ComfortDelGro

[winston]

not vested

ComfortDelGro (CD SP, BUY, TP: SGD1.55)

Expect a Gradual Earnings Recovery; BUY

Company Update

Reiterate BUY with new SGD1.55 TP from SGD1.65, 12% upside and 5.1% 2021F yield.

While ComfortDelGro’s share price is expected to remain weak in the near term amidst poor 1H20 earnings, we note a gradual improvement in public transport ridership and MoM improvements in its taxi business.

The winning of bus tenders in Singapore will be near term positive.

The weakness in its share price offers investors an opportunity to accumulate the stock – as, operationally, the worst may be behind it, and CD seems set to deliver strong growth in 2021.

Source: RHB

https://research.rhbtradesmart.com/view ... 6b2ec44745

[winston]

not vested

ComfortDelGro - In the rearview mirror (CD SP, CP SGD1.39, BUY, TP SGD1.76, Industrials)

Maintain BUY with lower DCF-based TP of SGD1.76 as the worst appears priced in and CDG’s long-term structural growth is unchanged.

CDG reported 1H20 net loss vs MKE/consensus of a FY20E profit.

We cut our FY20E net profit by 48% to reflect slower recovery in rail ridership and compressed EBIT margins due to negative operating leverage.

CDG should recover as countries emerge from lockdown.

Stock is trading at 1.2x P/B or 2SD away from historical mean.

Key risk is a second lockdown.

Source: Kim Eng

https://www.kelive.com/KimEng/servlet/P ... &rid=52838

[winston]

not vested

ComfortDelGro Corporation (CD SP)
1H20: Looking Past The Worst

CD’s headline loss of S$6m for 1H20 was largely expected due to Circuit Breaker restrictions as well as impairments.

Public transport saw the worst effect from reduced ridership as well as lower bus service fees. Looking ahead, busier taxis are a positive as rental waivers get progressivey reduced.

Although management remains cautious on the rate of recovery in rail ridership, we like the positive trend of recovery.

Maintain BUY with a slightly lower PE-based target price of S$1.78

Source: UOBKH

https://research.uobkayhian.com/content ... f7761d5143

[winston]

ComfortDelGro Corporation (CD SP) - On the road to recovery

Covid-19 has impacted transport activity significantly in Singapore and overseas.

In Singapore, transport activity slowed down significantly in April and May, but has been recovering in recent times.

ComfortDelgro also benefitted from the government’s Jobs Support Scheme, and for the Singapore public bus operations, CD is not exposed to fare revenue, as the group operates under the bus contracting model.

CD’s net gearing remained low at 0.8% as at 1H20, and is in a position to undertake acquisitions when the opportunity arises.

As mentioned in our earlier reports, Covid-19 has had a significant impact to the taxi and rail business, though this should recover over the longer term. BUY.

Source: OCBC

[winston]

not vested

Company Update

Saved by government grants. CD reported a net loss of S$6mn in 1H20. If not for government grants, it would have reported a loss of S$66mn.

As bad as it can get. We believe CD’s share price has factored in the worst of the pandemic-induced recession and lockdowns.

While there are still concerns of a second wave, we think governments will not repeat the blanket ban that were imposed in 1H20. Therefore, we are of the view that demand for local transport will only increase moving forward.

Maintain OUTPERFORM but lower our fair value to S$1.63, based on 17.2x FY2021F EPS.

The group has minimal gearing (net debt of only S$21.9mn).

If countries like Singapore, Australia and the UK ease travel restrictions earlier-than-expected, we could possibly see a re-rating of CD’s share price.

Source: KGI

[winston]

not vested

ComfortDelGro Corporation (CD SP)
3Q20: Sequential Recovery But The UK Takes A Detour

CD reported headline net profit of S$21.7m in 3Q20, a reversal from a loss in 2Q20.

A recovery in rail ridership and easing of taxi rental waivers provided the uplift.

However, the group recorded further impairment, largely for the taxi and coach business in the UK which remained hampered by new lockdown measures.

Looking forward, the easing of COVID-19 measures will continue to be a positive for ridership, including that for Phase 3 reopening.

Maintain BUY and target price of S$1.78.

Source: UOBKH

https://research.uobkayhian.com/content ... 41605b21bd

[winston]

ComfortDelGro Corporation (CD SP) - A brighter road to recovery

Covid-19 has impacted transport activity significantly in Singapore and overseas.

In Singapore, transport activity slowed down significantly in April and May, but has been recovering in recent times.

ComfortDelgro also benefitted from the government’s Jobs Support Scheme, and for the Singapore public bus operations, CD is not exposed to fare revenue, as the group operates under the bus contracting model.

CD’s net gearing has remained low, and is in a position to undertake acquisitions when the opportunity arises.

As mentioned in our earlier reports, Covid-19 has had a significant impact to the taxi and rail business, though this should recover over the longer term. BUY.

Source: OCBC

[behappyalways]

ComfortDelGro reports 76.7% plunge in FY2020 earnings of $61.8 mil, remains in black thanks to government grants
https://www.theedgesingapore.com/capita ... ack-thanks

[behappyalways]

ComfortDelGro posts 56% growth in 1Q21 PATMI, announces plans to unlock value in Australia
https://www.theedgesingapore.com/news/r ... -australia

[behappyalways]

ComfortDelGro reports earnings of $91.1 mil for 1HFY2021, plans dividend of 2.1 cents
https://www.theedgesingapore.com/capita ... d-21-cents