-->

ComfortDelGro - Maybank Research 2022-05-15: Room To Move

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

ComfortDelGro - Room To Move

1Q22 results in line, retain Buy with unchanged target price

  • ComfortDelGro (SGX:C52)’s 1Q22 headline PATMI of S$76.7m (+30.4% y-o-y) was boosted by a one-off exceptional gain of S$37.2m on disposal of its Alperton property in London. Excluding non-recurring items and government relief, we deem core operating profit of S$64.6m (+25.7% y-o-y) - or ~23%/22% of MIBG/consensus full year estimates to be broadly within expectation.



No change to our below-consensus core EPS

  • ComfortDelGro's 1Q22 revenue rose 3.9% y-o-y to S$895.9m with overseas contributing 43.2% of the top line, down a tad from 45.6% last year. By segment, public transportation services accounted for 79.5% of the topline in 1Q22.
  • While rail ridership (~65-70% of pre-COVID level) and other commercial services turnover should continue to improve, we are also mindful of the cost pressures especially with higher electricity bills (+40% y-o-y). Hence, we are keeping our below-street forecasts after having previously factored in a tighter EBIT margin assumption.


Taxi should see q-o-q growth with improving mobility

  • Taxi revenue came in at S$106.3m (+3.3% q-o-q, -11.2% y-o-y) given a smaller fleet size compared to last year, continued rental discounts and one-off fuel rebates (S$0.8m) given to drivers in Singapore.
  • In China, rental waivers were also granted due to the COVID-19 lockdowns, while the UK saw lower revenues after the divestment of the London taxi business in Jun 2021.
  • On a positive note, anecdotal evidence suggests that higher fares have not dampened commuters’ demand for P2P trips as Singapore dropped most of its pandemic-era curbs and reopened its economy.


Introduces 4% commission for ride hailing services






Eric Ong Maybank Research | https://www.maybank-ke.com.sg/ 2022-05-15
SGX Stock Analyst Report BUY MAINTAIN BUY 1.760 SAME 1.760



Advertisement



MOST TALKED ABOUT STOCKS / REITS OF THE WEEK



loading.......



ANALYSTS SAY


loading.......