Profile
Previous Close Price
Key Statistics
| Dec S$ m | 2023 | 2024f | 2025f |
|---|---|---|---|
| Revenue | 3,880 | 4,461 | 4,651 |
| Net Profit | 181 | 224 | 250 |
| Profit Gth (%) | 4.3 | 24.3 | 11.3 |
| PE (X) | 16.2x | 13.1x | 11.7x |
| Div Yield (%) | 4.9 | 6 | 6.7 |
| P/BV (X) | 1.1x | 1.1x | 1.1x |
Recent Developments
- 01 Apr 2024ComfortDelGro Corporation Ltd Broadening UK bus network with Greater Manchester contract win
- 11 Mar 2024ComfortDelGro: Looking forward to another year of strong growth
- 06 Mar 2024ComfortDelGro Corporation: <News Alert> “Daylight” shining longer for taxis
- 29 Feb 2024ComfortDelGro Corporation Ltd: Shaking off dying taxi business stigma
- 13 Feb 2024ComfortDelGro Corporation Ltd: Going on the acquisition path
- 24 Jan 2024ComfortDelGro Corp: Stockholm win, step towards becoming a major global rail operator
- 28 Dec 2023Increasing taxi bookings commission to 7% a positive boost to bottomline
- 26 Dec 2023ComfortDelGro Corp: Acquisition of A2B Australia to bolster Australian business
- 06 Dec 2023ComfortDelGro Corporation Ltd: Taking a cab to cost more, but consumers are willing to pay
- 15 Nov 2023ComfortDelgro: Sequential improvement aided by improved UK Public Transport Dynamics
Our Views
Price Relative
Forecasts and Valuation
FY Dec ( S$ m)
2022 A
2023 A
2024 F
2025 F
Revenue
3,781
3,880
4,461
4,651
EBITDA
628
638
770
827
Pre-tax Profit
273
280
345
384
Net Profit
173
181
224
250
Net Pft (Pre Ex.)
173
181
224
250
Net Pft Gth (Pre-ex) (%)
40.7
4.3
24.3
11.3
EPS ( S cts)
7.98
8.32
10.3
11.5
EPS Pre Ex. ( S cts)
7.98
8.32
10.3
11.5
EPS Gth Pre Ex (%)
41
4
24
11
Diluted EPS ( S cts)
7.97
8.30
10.3
11.5
Net DPS ( S cts)
8.48
6.66
8.12
9.07
BV Per Share ( S cts)
118
120
123
127
PE (X)
16.9
16.2
13.1
11.7
PE Pre Ex. (X)
16.9
16.2
13.1
11.7
P/Cash Flow (X)
4.9
6.5
4.1
3.9
EV/EBITDA (X)
4.3
4.4
4.0
3.6
Net Div Yield (%)
6.3
4.9
6.0
6.7
P/Book Value (X)
1.1
1.1
1.1
1.1
Net Debt/Equity (X)
CASH
CASH
CASH
CASH
ROAE (%)
6.6
7.0
8.5
9.2
Earnings Rev (%):
6
9
Consensus EPS ( S cts):
9.5
9.9
Other Broker Recs:
B: 8
S: 0
H: 1
Leveraging its balance sheet, the company is making strategic, earnings-accretive acquisitions in sectors within its domain and geographical expertise. 2023/2024 marks a strategic capital management shift to deploying its net cash position towards bolt-on (>S$100m) acquisitions. We believe the two major acquisitions announced – A2B and CMAC – were sensible ones. They were acquired at reasonable valuations (~25x PE), are earnings accretive, and align with CDG's geographical and transport domain expertise. We anticipate the company will continue to seek out opportunistic acquisitions to complement its overall long-term growth strategy.
Overall health of Singapore’s P2P market is crucial for sustained margin and profitability in the Taxi & Private Hire segment. Notably, the Singapore P2P market demonstrated strong growth of 7.4% y-o-y in 2023, driven by a 4.1% ridership growth and 3.3% in average fare increases. We expect the P2P market to maintain its robust growth trajectory in 2024, driven by continued consumer demand for convenience and their willingness to pay a premium for it. We continue to watch signs of intensifying competition, to be reflected in fare price growth.
Maintain BUY with higher TP of REF TP \* MERGEFORMAT S$1.80. This revised TP reflects our expectation of higher earnings resulting from a combination of factors, including a 7% transport fare increase, a 2% increase in booking commissions, and the recovery of UK & China businesses, among others. We anticipate further re-rating of the company's valuation given our confidence in its ability to deliver, and even exceed, our earnings growth expectations. Our valuation methodology combines a 1.3x P/BV multiple and a higher 5.5x forward EV/EBITDA multiple given its >20%+ growth going into FY24.
Risks
Research Platform: Insights Direct
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