ComfortDelGro - Maybank Kim Eng 2021-04-15: Rationalising Competition; Grab’s Growth Strategy An Incremental Positive For Comfortdelgro

COMFORTDELGRO CORPORATION LTD (SGX:C52) | SGinvestors.io COMFORTDELGRO CORPORATION LTD (SGX:C52)

ComfortDelGro - Rationalising Competition; Grab’s Growth Strategy An Incremental Positive For Comfortdelgro


Grab to list in the US through SPAC deal

  • Grab’s stated growth strategy in its investor deck is an incremental positive for ComfortDelGro (SGX:C52) because the former is shifting towards financial services and delivery, from ride-hailing. This supports our thesis of moderating competition between taxi and private hire car players in Singapore.
  • Any weakness in ComfortDelGro's share price represents a good opportunity to accumulate. Maintain BUY on ComfortDelGro with a DCF-based target price of S$1.88 (WACC 8.2%, LTG 1%).



Delivery and financial services taking driver’s seat

  • Grab Holdings will list in the US by merging with Altimeter (AGC US), a special-purpose-acquisition company (SPAC). The merger is slated to complete in Jul’21. The Singapore-based “super app” is set to have a market value of ~ US$39.6b after the merger.
  • From Grab’s investor presentation, the “super app” market leader in Southeast Asia is forecasting its addressable market to expand 350% to US$180b by 2025 from US$52b in 2020. Its total gross merchandise volume (GMV) grew 2.5% to US$12.5b in 2020, which was driven by a 90% growth in food deliveries to US$5.5b, offsetting a 43% drop (to US$3.2b) from its ride-hailing divisions.
  • Going forward, its financial services and delivery businesses are expected to be the key GMV drivers, which would make up 76% of Grab’s GMV by 2023.


Rationalising competition



Transport recovery still in play






Kareen Chan Maybank Kim Eng Research | https://www.maybank-ke.com.sg/ 2021-04-15
SGX Stock Analyst Report BUY MAINTAIN BUY 1.880 SAME 1.880



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