ComfortDelGro

[winston]

not vested

ComfortDelGro Corporation ($2.62, up 1.0 cent) reported an inline set of results with 3Q14 revenue grew by 6.0% yoy to $1.037 bln given broad-based growth as practically all business segments registering increases in the topline.

However, we note that actual revenue growth of $44.6 mln was boosted by a positive foreign currency translation of $14.3 mln due to the stronger Sterling Pound.

Revenue from the group’s overseas operations accounted for 40.3% of its overall revenue.

On a segmental basis, revenue from the group’s Bus Business was $528.1m for 3Q14 (+4.9% yoy), mainly attributed to the UK Bus Business with $24.8mln and the Singapore Bus Business with $21.0mln offset by the decrease from the Australia Bus Business with $21.0mln.

Management said its subsidiary SBS Transit will be tendering for the upcoming Bulim bus package, with results expected to be announced in 2Q15.

The better-than-expected performance came from the Rail Business which saw revenue jumping 21.4% yoy to $51.0mln for 3Q14, driven by contribution from Downtown Line (DTL) 1 and increases in average daily ridership and average fare.

Average daily ridership for the North-East Line also grew by 7.1% to 527K passenger trips and that for the two Light Rail Transit systems rose by 9.5% to 89K passenger trips.

Average daily ridership for DTL1 was 68K passenger trips for 3Q14.

Amid rising operating cost pressures, net profi t still managed to increase by 5.3% to $80.8 mln.

We understand that ComfortDelgro has taken advantage of the recent slide in fuel prices to lock in cheap hedging positions at lower rates than the previous year.

Notably, about 60% and 70% of its diesel requirements for the rest of 2014 and its 2015 usage have already been hedged respectively.

ComfortDelgro continues to generate strong free cash fl ow with balance sheet remains healthy. After accounting for the borrowings of $733.4m, the group had a net cash position of $15.4m. Its gross gearing ratio was 25.5% as at end-Sept 2014 (from 28.9% a year earlier).

Compared to SMRT, valuation is relatively undemanding at 19.5x FY14 and 18x FY15 P/E. We also see room for the group to potentially increase its dividends payout going forward. Maintain Buy.

Source: Lim & Tan

[winston]

not vested

ComfortDelGro: Solid 3Q14 results within expectations

ComfortDelGro’s (CDG) 3Q14 results were largely in-line with our expectations.

PATMI grew 5.3% YoY to S$80.8m on the back of a 6.0% increase in revenue to S$1,037.3m.

Top line growth was mainly driven by Bus (+4.9%), Rail (+21.4%) and Taxi (+7.9%) segments.

For 9M14, CDG’s revenue and PATMI rose 9.0% and 8.1% YoY to S$3,004.4m and S$219.8m, forming 75.9% and 78.2% of our FY14 projections, respectively.

Outlook remains relatively stable with Singapore and UK Bus segment as well as Singapore Taxi segment expected to drive revenue growth.

While we think CDG’s 3Q14 results are largely in-line with expectations, we adjust our FY14 PATMI forecast upwards by 2.2% to factor in the outlook guidance from management.

Consequently, our DDM-derived fair value estimate increases from S$2.92 to S$3.03, maintain BUY.

Source: OCBC

[winston]

not vested

Faring as expected

3Q14 results in line, net profit grew 5.3%

Steady performance expected as we enter 4Q; 9M14 forms 78% of our full-year forecast (9M13: 77%)

Trading at 19.2x FY15F PE, which is c.1.5 standard deviations above historical average

Maintain HOLD, TP kept at S$2.71

Source: DBS

http://www.remisiers.org/cms_images/DBS_comfortdel.pdf

[winston]

not vested

Time: 4:50PM
Exchange: SGX
Stock: ComfortDelGro(C52)
Signal: Bearish MACD Crossover
Last Done: $2.6

Source: UOBKH

[winston]

not vested

ComfortDelGro Corporation- 3Q14: Results slightly above expections. Consistently on track.
(CD SP/BUY/S$2.62/Target: S$3.02)
FY14F PE (x): 19.7
FY15F PE (x): 18.6

Earnings slightly above expectations.

3Q14 net profit of S$80.8m improved 5.3% yoy and was slightly above our (30.3%) and consensus (28.6%) expectations.

Segmental review. Comfort Delgro (CD) delivered solid 3Q14 results with broad-based growth across most key sectors.

3Q14 revenue for the group’s bus (+4.2% ridership yoy) and taxi segments increased 5.0% yoy and 7.9 yoy respectively.

Rail revenue grew by 21.4% to 51.0m yoy due to the contribution from Downtown Line (DTL) 1, increases in average daily ridership and average fare.

Revenue from the group’s Inspection and Testing Services of S$27.3m was higher by 3.8% yoy.

Maintain BUY on CD with a DCF-based target price of S$3.02 (previously S$2.83).

The increase reflects stronger rail and taxi revenue growth. At our target price, the implied 2015F PE of 21.5x is close to its +1SD P valuation but we believe this is deserved given its strong earnings track record and cash flow.

Source: UOBKH

[winston]

not vested

ComfortDelGro: Steady growth to continue into 2015

Stability is ComfortDelGro’s (CDG) key strength thus far for FY14 and we think its ability to remain so, is attractive.

CDG’s results for all three quarters in FY14 came in within our expectations and we believe it is on track to meet our forecasted 9.0% YoY growth for FY14’s PATMI.

CDG’s key growth drivers are its bus, rail and taxi segments and we believe these will remain strong going into 2015.

For bus and rail operations in Singapore, the potential catalyst could come from a fare increase in 2015.

We continue to like CDG for its diversified yet stable revenue streams from different geographical regions.

With a healthy balance sheet, we expect stable and decent dividends (~55% payout) ahead. Hence, we reiterate our BUYrating on CDG with an unchanged FV estimate of S$3.03.

Source: OCBC

[winston]

not vested

Time: 4:52PM
Exchange: SGX
Stock: ComfortDelGro(C52)
Signal: Resistance - Breakout with High Volume
Last Done: $2.55

Source: UOBKH

[winston]

not vested

Time: 8:58AM
Exchange: SGX
Stock: ComfortDelGro(C52)
Signal: Bullish MACD Crossover
Last Done: $2.59

Source: UOBKH

[winston]

not vested

Time: 8:58AM
Exchange: SGX
Stock: ComfortDelGro(C52)
Signal: Bearish MACD Centerline Crossover
Last Done: $2.53


Source: UOBKH

[winston]

not vested

Time: 11:06AM
Exchange: SGX
Stock: ComfortDelGro(C52)
Signal: Bullish MACD Centerline Crossover
Last Done: $2.6

Source: UOBKH