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Credit Suisse maintained Outperform Rating on Comfort Delgro
We see ridership growth metrics for both rail and bus operations
recovering on the back of improving economic fundamentals and
tourist arrivals further boosting taxi demand, with CD betterleveraged
given its dominant share of the Singapore taxi market.
● We see continued execution of key initiatives in the government’s
2008 Land Transport Review, with aims to raise public transport
ridership over the longer term. This should, in aggregate, provide
strong tailwinds for the operators.
● Key events and catalysts include: 1) the government taking over
as centralised bus route planner, with routes opened up for
competitive tendering, 2) commencement of the final phase of the
Circle Line in 1H11, and 3) the much-anticipated award of the
Downtown Line (DTL) contract.
● We maintain our OUTPERFORM rating on Comfort Delgro, as we see it as
better-leveraged into an economic recovery, and given its strong
overseas growth profile. We maintain UNDERPERFORM on
SMRT on valuation grounds, given 9% potential downside to our
S$1.85 target price.
Comfort Delgro better leveraged to strong taxi demand
Comfort Delgro saw its Singapore taxi revenue and operating profit jump 13% and
34%, respectively, for its recent September quarter, driven by a larger
fleet (up 5% YoY), higher rentals, with new Sonata models and
cashless transaction volumes, reflecting strong underlying demand.
Improving macro conditions and rising tourist arrivals should support
growth volumes of daily taxi trips going forward. We see CD as bestleveraged
to gain given its dominant 60% market share, via cost
savings on lower driver rebates, higher volume of call bookings, an
increase in daily rental rates, improvement in fleet utilisation, and
potential expansion of its taxi fleet.
Make love more, don't make more enemies
Yes, will go up.
It has managed to close $1,53 as indicated earlier and may test $1.59 - $1.60 ..
New123 ( Date: 15-Nov-2010 14:47) Posted:
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Phillip Securities Research Pte Ltd
Singapore
15 Nov 2010
Comfort Delgro – Results (Toh wei kiong)
Recommendation: Buy
Previous close: S$1.46
Fair value: S$1.75
- 3Q10 revenue came in at S$789.3m (+5.2% y-y) while net profit was up 10.4% y-y to S$61.4m, both were ahead of our expectations
- Broad based growth across all segments especially Singapore Taxi
- Upgrading our operating and net profit estimates by 11.5% and 7.5%
- Maintain Buy recommendation with fair value of S$1.75
/
ComfortDelgro: BUY (upgrade from HOLD); S$1.46; Bloomberg Code: CD SP
Get onboard
Price Target : 12 months S$ 1.79 (Prev S$ 1.65)
by: Andy SIM CFA +65 6398 7969
3Q10 +10% yoy, above our expectations on better revenues from Bus
and Taxi and lower costs
FY10-11F earnings raised by 4%-6%
Upgrade to Buy, TP raised to S$1.79 with 26% total return;
potential DTL contract win and improving ops should propel share
price
3Q above expectations, a record net profit quarter. 3Q net profit grew by
10% yoy to S$61.4m on the back of 5% topline growth to S$823.4m. This was
slightly above our expectations on the back of a better-than-expected bus
and taxi revenue contribution and slower growth in costs. Operating
expenses increased by a slower clip at 3.7% vis-à-vis topline’s 5%,
resulting in improvement in operating margin to 12.9% in 3Q10 (3Q09:
11.6%).
Time is right to get onboard; upgrade to Buy. We are upgrading our
recommendation to Buy as we see near to medium term catalysts for
ComfortDelgro. These include: (i) ComfortDelgro is the likely candidate to
clinch the DTL contract; (ii) Singapore operations to benefit from better
public transport network; (ii) UK ops upturn looks sustainable; (iv)
Australia should continue to show robust growth; (v) undemanding valuations
of 12.5x PE vs SMRT’s 17.5x (FYE Mar 12).
Raised forecasts by 4%/ 6%, see more upside than down. We raised our FY10F/
11F forecasts by 4%/ 6% as we factor in (i) contributions from recently
completed acquisition of Swan Taxis in Perth; (ii) higher revenue
contributions from Singapore taxis arising from its higher rental/ expanded
fleet. Consequently, we raised our TP to S$1.79 (26% upside) on the back of
our earnings revision and as we roll our PE/ DCF valuation to FY11F, from
blended FY10F/11F. Key risk to our recommendation is surge in oil price.
Source: DBS Secs
Make Love More, Don't Make More Enemies
Today is Still, Still a Good Day to BuyComfortDelGro.
alexchia01 ( Date: 02-Nov-2010 12:44) Posted:
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Today is still a Good Day to Buy ComfortDelGro.
Now trading at $1.47.
Good luck.
alexchia01 ( Date: 01-Nov-2010 12:51) Posted:
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Today is a Good Day to Buy ComfortDelGro.
Business: Passenger Land Transportation; Taxi, Bus, Rail, Car Rental and Leasing; Automotive Engineering, Maintenance Services, Inspection, Test and Assessment Services; Learner Drivers’ Instruction Services; Insurance Brokerage Services and Outdoor Advertising; In South Asia and Europe.
Now Trading at $1.48
1. In an Downtrend Channel. However, just bounded off its support level of $1.46. Potential High of $1.53.
2. Fibonacci support level is $1.475, this is a strong support level. If Price can close above this Support Level today, there is a high chance of price moving upwards. If price breaks this support level, it can fall to $1.38.
3. MACD lines are reversing upwards, but there are some sign of weakness.
4. Stochastic lines have crossed and moving upwards. Still in Oversold Region.
5. Revenue, Profit and Cash Flow for QoQ are Good. This is a safe company.
6. STI turns Bullish today. This is a Good Time to start Buying.
Stop-Loss Below $1.445.
Target Price: $1.530.
More on my Blog at Alex Trades.
This is just my personal analysis. You invest at your own risk.
Good luck to all.
Now is time for this counter to move. Technically looks positive.. I think is going to test 1.59 - 1.60..
New123 ( Date: 05-Oct-2010 14:11) Posted:
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I think is a good opportunity to buy on dip..Defensive counter..
This is one of the most disappointing STI component stocks counter, hope the price can up to $1.60..
Great prospect....... and ST Engg too ! But have to look at least mid-term
albeniz ( Date: 18-Aug-2010 00:13) Posted:
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The Technical charts is pointing at a favorable condition and I think is a good time to accumulate some ?
Comfort Delgro
Just look at its recent announce half yearly report. this counter is overvalue. profit only at 5.xx cents with price of $1.5X.
upside is limited.
Anyone here interested or bought this counter? Any prospect?
moved.
This one is so quiet recently, lets give it a kick on the back to move....
ComfortDelGro - OCBC IR
Bullish break above downtrend line suggests more upside ahead
More recovery to come. ComfortDelGro could see more upside
potential, after successfully rebounding off the $1.53 key resistanceturned-
support recently; this later led to a bullish break above its
near 3-month downtrend line on heavy volume last Friday.
Indicators are still bullish. The RSI has risen above the centerline
while the MACD indicator has initiated a bullish crossover last
week (see enlarged chart); they suggest that the upside momentum
remains intact.
Initial resistance at $1.67. On the upside, we peg the initial
resistance at $1.67 (upper boundary of 8-month horizontal channel),
breaking which, the next resistance is at $1.74 (support-turnedresistance).
Immediate support at $1.53. Meanwhile, key $1.53 becomes
the immediate support, ahead of $1.42 (resistance-turned-support)
and $1.25 (various troughs from Feb-Jul ‘09).
