ComfortDelGro
- ComfortDelGro’s subsidiary has been shortlisted as one of four potential operators for London Overground.
- London Overground is a suburban rail network and is managed by Transport for London (TfL).
- The new concession is for 7.5 years from Nov 2016. The tender documents will be issued by end July and bid submission by mid-Oct.
- At this juncture, it is still too early to factor this development for CD’s forecasts given the uncertainty of the tender process and the other contenders.
- Nonetheless, our back-of-envelope calculation suggests that this could have a c.3% positive impact on CD’s net profit in FY17F if it wins.
- Maintain HOLD, TP: S$3.00.
(Yeo Kee Yan, Ling Lee Keng)
Source: http://www.dbsvickers.com/
