ComfortDelGro

Comfortdelgro Corp. and its subsidiaries have eight operating divisions: Bus, which is engaged in bus fare collections, the operation of scheduled services, provision of coach rental services and ancillary advertisement; Bus Station, which is engaged in fare collection; Rail, which is engaged in rail fare collection and ancillary advertisement; Taxi, which is engaged in renting out taxis, operating taxi bureau services and ancillary advertisement; Automotive Engineering Services, which is engaged in the provision of vehicular maintenance and repair services; Inspection and Testing Services, which provides motor vehicle inspection services; Car Rental and Leasing; as well as Driving Centre.
  • TickerC52
  • ISINSG1N31909426
  • ExchangeSingapore Exchange
  • SectorTravel & Leisure
  • CountrySingapore

Analysts

UOB
Chaiwat Arsirawichai ...
  • Johnny Yum Chung Man
  • Jonathan Koh
  • Keith Wee Teck Keong
  • Ken Lee
  • Loke Pei Hao
  • Lucas Teng Yao Yang
  • Raphon Prima
  • Tanaporn Visaruthaphong

Regional Morning Notes - Wednesday, July 10, 2019

CHINA Sector Automobile: PV retail sales growth returns to positive territory in June. INDONESIA Update Bank Rakyat Indonesia (BBRI IJ/BUY/ Rp4,410/Target: Rp4,900): Potential 20% net income growth in 2020 has not been priced in; upgrade to BUY. MALAYSIA Update Hong Leong Bank (HLBK MK/HOLD/RM19.00/Target: RM20.45): Moderating revenue trends and relatively rich valuations at 1.48x FY20F P/B against ROE of 10.4% (sector P/B: 1.18x, ROE: 10.2%) prompt us to maintain HOLD. SINGAPORE Update ComfortDelGro Corporation (CD SP/BUY/S$2.84/Target: S$3.08): Positives from regulatory changes. Suntec ...

UOB
Lucas Teng Yao Yang

ComfortDelGro Corporation - Positives from regulatory changes

Proposed regulatory changes were discussed recently and are largely positive for ComfortDelGro’s lagging business units: Singapore rail and taxis. The temporary grant for rail could lift the loss-making DTL while a private hire licensing law could further diminish competition. We raise our PE valuation multiple to 19.5x (FY20F), 1SD above its mean, given operating profits are close to the highs seen in 2015-16 (average PE: 20x). Maintain BUY with a higher target price of S$3.08.

UOB
Jonathan Koh ...
  • Loke Pei Hao
  • Lucas Teng Yao Yang

Singapore Daily - Wednesday, July 10, 2019

KEY HIGHLIGHTS Update ComfortDelGro Corporation (CD SP/BUY/S$2.84/Target: S$3.08): Positives from regulatory changes. Suntec REIT (SUN SP/HOLD/S$1.95/Target: S$2.00): Continued expansion In Australia.

UOB
Lucas Teng Yao Yang ...
  • Singapore Research Team

Strategy - Quantitative analysis:Performance tracker and tactical recommendation

Since our tactical recommendation on 6 Jun 19 to switch into banks and Venture Corp in response to Trump’s tariff threat, the FSSTI has rallied by 5.8%. Banks and Venture Corp were outperformers as we anticipated, while O&M stocks, CapitaLand and CityDev also had extended gains. From a technical perspective, Bumitama and Ho Bee appear the most attractive. Our tactical recommendation suggests a switch out from the top 6 outperformers to Bumitama, Ho Bee, CD REIT and FHT.

UOB
Chaiwat Arsirawichai ...
  • Johnny Yum Chung Man
  • Jonathan Koh
  • Keith Wee Teck Keong
  • Ken Lee
  • Loke Pei Hao
  • Lucas Teng Yao Yang
  • Raphon Prima
  • Tanaporn Visaruthaphong

Regional Morning Notes - Wednesday, July 10, 2019

CHINA Sector Automobile: PV retail sales growth returns to positive territory in June. INDONESIA Update Bank Rakyat Indonesia (BBRI IJ/BUY/ Rp4,410/Target: Rp4,900): Potential 20% net income growth in 2020 has not been priced in; upgrade to BUY. MALAYSIA Update Hong Leong Bank (HLBK MK/HOLD/RM19.00/Target: RM20.45): Moderating revenue trends and relatively rich valuations at 1.48x FY20F P/B against ROE of 10.4% (sector P/B: 1.18x, ROE: 10.2%) prompt us to maintain HOLD. SINGAPORE Update ComfortDelGro Corporation (CD SP/BUY/S$2.84/Target: S$3.08): Positives from regulatory changes. Suntec ...

UOB
Lucas Teng Yao Yang

ComfortDelGro Corporation - Positives from regulatory changes

Proposed regulatory changes were discussed recently and are largely positive for ComfortDelGro’s lagging business units: Singapore rail and taxis. The temporary grant for rail could lift the loss-making DTL while a private hire licensing law could further diminish competition. We raise our PE valuation multiple to 19.5x (FY20F), 1SD above its mean, given operating profits are close to the highs seen in 2015-16 (average PE: 20x). Maintain BUY with a higher target price of S$3.08.

UOB
Jonathan Koh ...
  • Loke Pei Hao
  • Lucas Teng Yao Yang

Singapore Daily - Wednesday, July 10, 2019

KEY HIGHLIGHTS Update ComfortDelGro Corporation (CD SP/BUY/S$2.84/Target: S$3.08): Positives from regulatory changes. Suntec REIT (SUN SP/HOLD/S$1.95/Target: S$2.00): Continued expansion In Australia.

UOB
Lucas Teng Yao Yang ...
  • Singapore Research Team

Strategy - Quantitative analysis:Performance tracker and tactical recommendation

Since our tactical recommendation on 6 Jun 19 to switch into banks and Venture Corp in response to Trump’s tariff threat, the FSSTI has rallied by 5.8%. Banks and Venture Corp were outperformers as we anticipated, while O&M stocks, CapitaLand and CityDev also had extended gains. From a technical perspective, Bumitama and Ho Bee appear the most attractive. Our tactical recommendation suggests a switch out from the top 6 outperformers to Bumitama, Ho Bee, CD REIT and FHT.

COMFORTDELGRO CORP.LTD. with less fundamental stars is reduced to Neutral

COMFORTDELGRO CORP.LTD. (SG), a company active in the Transportation Services industry, loses a star(s) at the fundamental level and sees its general evaluation downgraded. The independent financial analyst theScreener just removed a fundamental star(s) for a 2 over 4-star rating. As such, market behaviour remains unchanged and is evaluated as moderately risky. theScreener believes that the loss of a star(s) merits downgrade to the general evaluation of the title, which passes to Neutral. As of the analysis date April 26, 2019, the closing price was SGD 2.67 and its expected value was estimate...

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Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

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