Members Login
Username 
 
Password 
    Remember Me  
REITData -> TalkStock -> SGX - Stocks -> ComfortDelgro
Post Info TOPIC: ComfortDelgro
Metrop


Newbie

Status: Offline
Posts: 1
Date:
RE: ComfortDelgro
Permalink  

Comfort Delgro Cabcharge Pty Ltd's CEO Owen Eckford resigned in May 2009 and has been replaced by Jim Glasson who resigns 29 May 2009 from NSW Government's Director General of Transport

__________________
tfwee


Veteran

Status: Offline
Posts: 581
Date:
Permalink  

COMFORT DELGRO, uob kay hian remains a BUY

- CD, through its Australian subsidiary, ComfortDelgro Cabcharge, is paying A$14.5m (S$18.9m) for the business and assets of Toronto Bus Services, a bus and coach operator in the Newcastle region of New South Wales.  The acquisition reinforces CD Cabcharge's position as New South Wales' largest private public bus operator with a 24% market share.  CD Cabcharge currently operates Westbus, Hillsbus and Hunter Valley Buses in New South Wales.

- Toronto Bus Services operates 80 buses, 4 coaches and 3 depots.  Its operations complement CD Cabcharge's existing Hunter Valley fleet of 167 buses which operate out of 2 depots.  With the amalgamation of the 2 operations, dead mileage can be reduced by redeploying buses to depots what are located closer to their routes.  This will enhance efficiency and help improve on overall operating margin.

- Aside from Toronto Bus Services, CD Cabcharge has also recently invested in a new bus depot in Singleton and acquired a 3 hectare site in Heatherbrae to develop a bus body building plant.   When operational in late 2008, the plant will be able to deliver up to 200 buses annually.

- For 2006, Australia accounted for 4.8% share of CD's revenue and 4.7% share of PBT.  Australia operations recorded a 12.9% PBT margin for 2006.   We expect Australia's share of profit contribution to increase over the next few years, on the back of these recent initiatives raising revenue and widening operating margin.  In addition, we also expect CD to increase its scale of operations in China, which will also increase its operating margin there.  Overall, we remain positive on CD's overseas expansion programmes.

- In addition, we believe the market will also price in the benefits from the potential ownership restructuring of the Singapore land transport network. Our CD target price of S$2.91 comprises : a) S$2.70 value based on current land-transport ownership structure; and b) S$0.21 based on the assumption of Singapore land transport restructuring leading to one operator running all rail and bus services.


__________________
Fortune favors the Bold
tfwee


Veteran

Status: Offline
Posts: 581
Date:
Permalink  

Extracted from DMG Daily

Comfort Delgros presence in China extends to 13th city

ComfortDelGro Corporation has broadened its overseas portfolio with a RMB 84m (approximately S$17m) investment in a taxi joint venture in Nanjing, China. This marks the Groups first investment in the capital of Jiangsu Province, bringing to 13 the total number of cities ComfortDelGro operates in China.

Under the agreement, ComfortDelGro and Nanjing Bulk Lifting and Transportation (Group) Co., Ltd (NBLT) has formed a joint venture named Nanjing ComfortDelGro Dajian Taxi Co., Ltd. NBLT will transfer its current taxi operations to the joint venture, in which ComfortDelGro holds a 70% stake. NBLT is one of the three largest taxi companies in Nanjing, operating a total of 497 taxis. It is involved in the transportation of bulky items, passenger transportation, port logistics operation, and real estate development.

NBLT, which has gained a reputation as a progressive taxi operator, was the first company to introduce Global Positioning System (GPS) on board its taxis in July 2005. For its efforts, it was awarded the coveted National Advanced Taxi Unit Award in 2006. Besides taxis, ComfortDelGro also operates a vehicle workshop, a car dealership and an inter-city bus business in Jiangsu Province.


__________________
Fortune favors the Bold
tfwee


Veteran

Status: Offline
Posts: 581
Date:
Permalink  

COMFORT, csfb remains OUTPERFORM with target price $2.80

- Our meeting with ComfortDelGro (CD) management reaffirms our view that the earnings outlook remains robust.domestic operations are benefiting from  a buoyant economy, while CD is continuing to execute on its overseas growth strategy.

- China remains the most exciting growth market for CD. CD is augmenting organic growth with acquisitions, as well as targeting new cities with a minimum 5 mn population base, ample bolt-on growth opportunities, and a favourable political backdrop, as it leverages its first-mover status and expands its footprint there.

- Management expects Australia.s contribution to group operating profits to rise from 5%, to 8-10%, in the next three years, by pursuing organic/inorganic growth  opportunities, driven by bus market consolidation brought about by government reforms.

- CD  remains undervalued against its land transport peers, and offers a supportive recurring dividend yield of about 4%. Our DCF- based target price of S$2.80  suggests 24%  potential upside. Maintain OUTPERFORM.


__________________
Fortune favors the Bold
tfwee


Veteran

Status: Offline
Posts: 581
Date:
Permalink  

Extracted from OCBC Research.

ComfortDelgro

Confirmation of a breakout

ComfortDelgro broke out of a wedge formation yesterday. The current break has provided sufficient confirmation signals.

First, yesterday's traded volume was significant compared to the previous day. Secondly, the price break had surpassed the 50-day moving average which provided some resistance during yesterday's trading session.

The rising stochastic indicator moved out of the oversold region and this signals a good probability that the up-move for ComfortDelgro is likely to continue in the days ahead.

Resistance set at S$2.45 and support set at S$2.14.


__________________
Fortune favors the Bold
KK


Guru

Status: Offline
Posts: 1236
Date:
ComfortDelgro - Kim Eng
Permalink  

16 Jun 07

Updates from Singapore and Dubai

Reading too much between the lines
We believe that the current market speculation about an impending restructuring in Singapores transport sector is partly due to an over emphasis of some wordings in ComfortDelGros (CD) FY06 annual report. As stated in CDs annual report, CD submitted its views to the Minister for Transport in response to his call for improvements of public land transport usage and services; the details are not disclosed. However, some people have interpreted CDs views as a proposal of two restructuring options: One, a mega-merger; and two, a reallocation of transportation assets. We reiterate our view that it is presently not evident whether or not a restructuring will occur. Factoring in a restructuring premium to the share price of any transport operator is therefore a risky proposition.

Three-way contest for Dubai Metro
If CD clinches the contract to operate the Dubai Metro, that would provide a near-term earnings boost and serve as a share price catalyst. The Dubai Metro, which is a driverless rail system, is expected to carry 1.2m passengers a day on average, equivalent to Singapores MRT network. CD is competing with SMRT Corporation Ltd (SMRT) and UK-based conglomerate Serco. The bidding results are expected to be announced either this month or next month. Being the first driverless rail operator in the world, CD may have an edge over its two rivals.

Fare increment likely lower than GST increment
The Goods and Sevices Tax (GST) will increase by two percentage points to 7% from 1 July, while a fare increment (if any) would only take effect from 1 October. The fare increment is likely to be by less than two percentage points; the fare increment in 2006 was capped at 1.7 percentage points. While the discrepancy between the GST increment and the fare increment would have a negative impact on CDs profits from the domestic bus and rail businesses, we feel that this could be partially offset by increasing bus and rail ridership.

Estimated 5.4% dividend yield, but fairly valued for now
Our fair value for CD is $1.96 based on 17x FY07 PER. CD has also announced that it should be able to utilise its remaining Section 44 tax credits in FY07. We estimate that special dividends arising from these tax credits when combined with a 50% payout on net profit should fetch a dividend yield of about 5.4%. The stock appears fairly valued after comparing our fair value and our estimated dividend yield against CDs current share price. Reiterate HOLD.

__________________
KK


Guru

Status: Offline
Posts: 1236
Date:
ComfortDelgro - DBS
Permalink  

14-May-07

Alight for now

Growth continues to be driven by overseas operations. Overseas revenue as a total of Group revenue rose by 5.5ppt to 45.5% to S$321m while operating profit contribution rose by 5ppt to 41.3% of Group total to S$33.7m. Meanwhile, Singapore operations remained stable, with contribution from the NEL coming into the black of S$2m from a loss of S$1m a year ago.

Expect more of the same in the coming quarters. Looking ahead, we expect bus operations in China and Australia to expand, with also higher contribution from the taxi business in China. With operations in Singapore looking more stable this year, we expect double-digit operating earnings growth for ComfortDelgro over the next two years.

Merger with SMRT would be positive but it is not yet a certainty. There has been talk of a possible merger with ComfortDelgro that would create an enlarged entity with likely significant cost savings and profit enhancement from less competition in various segments e.g. taxi. We believe value enhancement from a merger could be as much as 25% but also opine that we are still quite far away from seeing the merger as a done deal. Results of a Public Transport Review are only expected towards the end of the year, and various stakeholders especially the public, have also yet to be fully consulted on this issue. We thus think it is still too early to assume a merger would happen.

Downgrade to HOLD, TP maintained at S$2.21. Before we can fully examine the likelihood and benefits of a ComfortDelgro-SMRT merger, we feel that CDs valuations, which is already pricing in some possibility of a merger, are stretched. Downgrade to HOLD.

__________________
tfwee


Veteran

Status: Offline
Posts: 581
Date:
RE: ComfortDelgro
Permalink  

Extracted from JP

ComfortDelgro Decent start to the year

1Q07 result inline. Earnings result was EPS of 0.027, versus our estimate of 0.028. The result was in line with consensus of 0.026 by 2%. We are not changing our OW rating.

NEL profitability surpassing expectations. The company has managed to keep NEL profitable and has attained EBIT margins of 9.3%, well above our expectations for rail margins to hit 5.0% in FY07E compared with 0.8% margins in FY06. A slight disappointment came from its taxi division which posted a drop of 1.8ppt to 12.0% in EBIT margins compared to its previous year, nonetheless diesel sales posted strong margin increase up 5.6ppt to 14.0%.

Impact on the stock price. With the results inline with expectations and management reiterating a similar stance of increasing overseas revenue and stable operating conditions in the region, we believe that the key driver for stock performance continues to be the widespread media speculation about the potential merger between the two transportation companies in Singapore and recent news that the company is in a race to bid for an operator s license for Dubai's 70km rail line.

Price target, valuation, key risks: We maintain our Overweight recommendation on the stock and our December 2007 price target to S$2.40 based on our sum-of-the-parts valuation. Key risks include management not taking significant capital management initiatives to optimize CD s balance sheet, worsening taxi operations due to competition, and earnings susceptibility to high oil prices.


-- Edited by tfwee at 14:52, 2007-05-14

__________________
Fortune favors the Bold
tfwee


Veteran

Status: Offline
Posts: 581
Date:
Permalink  

Extracted from UOBKH

ComfortDelgro Corporation 1Q07 operating profit driven by overseas bus operations

ComfortDelgro (CD) reported 1Q07 net profit of S$55.4m, up 0.2% yoy. Excluding 1Q06 write-back of S$14.5m, net profit would have expanded 35.7% yoy.

China drove turnover expansion. Turnover expanded 9.3% yoy to S$705.6m. Singapore accounted for 54.6% share of turnover, having risen 5.7% yoy. UK/Ireland is the largest overseas contributor, with a 32.8% share of overall turnover. But China s turnover growth was a robust 14.4% (and accounted for 7.1% revenue share), despite China taxi turnover recording a 0.8% yoy decline due to a reduction in tax collected from taxi drivers on behalf of the government of Shenyang.

Operating profit was up a respectable 10.6% yoy to S$81.7m. Bus operating profit was up 17.6% yoy to S$32.7m (or 40% share), with bulk of the growth coming from overseas bus operations. In particular, the bus business under Metroline in the UK recorded operating profit of S$14.7m, up 44% yoy due primarily to higher quality incentive bonuses and lower fuel costs offset by higher staff costs. Increased ridership on the Singapore North East Line (NEL) led to operating profit of S$2m vs the operating loss of S$0.9m in 1Q06. These positives were, however, offset by the S$3.4m fall in Singapore taxi operating profit, which was due to the large increase in taxi benefits paid to taxi drivers.

Excluding 1Q06 write-back, PBT would have expanded 16.9% yoy. PBT of S$83.5m was 2.8% lower yoy. If we exclude the 1Q06 write-back on disposal of the Group s interest in Avenue Park, PBT would have been higher by 16.9% yoy. Tax was S$4.6m lower yoy mainly due to adjustments resulting from the 2ppt decrease in Singapore tax rate.

CD continued to generate good operating cash flow. 1Q07 operating cash flow of S$100.3m amounts to an annualised 19¢ per share. We believe CD s ability to keep its operating cash flow at a high level is a positive, especially with respect to its ability to pay out more dividends.

BUY CD. Our target price of S$2.91 comprises a) S$2.70 value based on current land-transport ownership structure, which factors in a DCF valuation of the Singapore bus, rail and advertising operations (using 2.5% terminal growth rate and WACC of 7.2%) and PE valuation for the other businesses; and b) S$0.21 based on the assumption of restructuring of the Singapore land transport system to one-operator running all rail and bus services.


__________________
Fortune favors the Bold
KK


Guru

Status: Offline
Posts: 1236
Date:
ComfortDelgro - BT
Permalink  

12 May 07

Write-off leaves Q1 profit flat at ComfortDelGro

COMFORTDELGRO yesterday posted a marginal 0.2 per cent increase in first-quarter profit to $55.4 million. Group revenue rose 9.1 per cent to $712.5 million, boosted by its major businesses, including that of subsidiary SBS Transit.

The year-on-year earnings rise would have been higher at 35.7 per cent, if a one-off $14.5 million write-off on the disposal of an interest in Avenue Park in Q1 FY2006 had been excluded.

Operating profit for Q1 FY2007 rose by 10.6 per cent to $81.7 million, with operating profit from overseas contributing 41.3 per cent, up from 36.3 per cent a year ago.

Turnover from overseas operations had also increased to 45.5 per cent from a 43.6 per cent.

'Our top-line continues to grow and costs are contained,' said ComfortDelGro group CEO Kua Hong Pak. 'We will continue to look to overseas operations to sustain our growth,' he added. The group has bus operations in the UK, Australia and China, taxi operations in the UK, and driving school and car rental businesses in China.

It has also been shortlisted - along with rival SMRT - to run the 70 km Dubai metro, the world's longest driver-less railway.

The group, which is the world's second largest land transport company by fleet size, has previously said it wants its overseas operations to contribute to half of its total turnover by between 2008 and 2010.

As for its operations in Singapore, the bus business is expected to improve modestly with the introduction of more services. The taxi operations here are expected to remain stable.

Yesterday, its listed unit SBS Transit reported a 16.5 per cent increase in first-quarter net profit to $17.03 million, on the back of a 7.2 per cent rise in revenue to $162.88 million.

The increase in revenue was by boosted higher bus and rail fares and higher advertisement sales.

ComfortDelGro shares lost 12 cents to close at $2.22 yesterday as it went ex-dividend. It hit a high of $2.44 last week. Shares of SBS Transit, which also went ex-dividend, came off their high of $3.78 to close at $3.50.

The recent highs of their share prices, as well as those of SMRT, came amid talk of a possible merger between SMRT and ComfortDelGro.



__________________
tfwee


Veteran

Status: Offline
Posts: 581
Date:
RE: ComfortDelgro
Permalink  

Extracted from UOB Kay Hian dated 30 April 2007

Land Transport Sector
Government approves building of the Downtown Line

The Government has given approval for LTA to build the Downtown Line (DTL) at a cost of S$12b. The 40km line will be mostly underground and will be built in 3 stages. The DTL is targeted to be completed by 2018.

DTL Stage 1 comprises the Downtown Extension (DTE) which was previously planned as an extension to the Circle Line. This 4.3km section will run from Bugis Station on the East-West Line (EWL) to Chinatown Station on the Northeast Line (NEL). This is targeted to be completed in 2013.

DTL Stage 2 will run from Bugis Station on the EWL, along the Bukit Timah Road corridor to link up with the Bukit Panjang LRT. This 16.6km stretch of the DTL is targeted to be completed in 2015.

DLT Stage 3 comprises the northern half of the previously announced Eastern Region Line (ERL). This 19.1km phase will run from Chinatown Station on the NEL to Expo Station on the EWL. This final phase of the DTL is targeted to be completed in 2018.

Singapore land transport operators will benefit from increased revenues when these new lines start to run. At this juncture, it is not clear as to how the land transport ownership structure will be changed after the land transport review. This will have an impact on which land transport operator will benefit more.

In the meantime, we continue to be positive on the Singapore land transport sector. CD & SMRT are both BUYs. CD s target price is S$2.91 and SMRT s is S$2.10, on the assumption that the land transport review will lead to only one operator in Singapore operating all the rail and bus services.

If one assumes the model of one operator running all rail services in Singapore and another operator running all bus services, there will be less cost synergies versus the former model and CD s target price would be a lower S$2.80 and SMRT's S$1.91.


__________________
Fortune favors the Bold
tfwee


Veteran

Status: Offline
Posts: 581
Date:
Permalink  

Proposal to merge transport operators
- April 20, 2007
AsiaOne
 
blank.gif

A formal proposal to restructure the public transport industry, which includes a mega-merger of the two major transport companies in Singapore, has been sent to the government.

It was submitted by Mr Lim Jit Poh, chairman of transport giant ComfortDelGro, according to a report in The Straits Times today.

This follows a call from the Transport Ministry six months ago for an industry review to raise public transport ridership sizeably.

The proposal, said the ST report, suggests two options: either a mega-merger with rival SMRT to create a single public transport group, or having one operator run the buses and the other, trains.

While both SBS Transit and SMRT have train and bus services, SBS Transit does not make much money from rail. This is conversely the case with SMRT and their bus services.

Problems for commuters have arisen from this clash, as too many bus services were removed to avoid duplicating MRT services. Commuters also require more transfers and as a result, travel in many parts of the island is far from "seamless".

Statistics from the General Household Survey 2005 conducted by the Department of Statistics found that the proportion of commuters who could take a straight bus to work had fallen from 25 per cent in 2000 to 21.9 in 2005. Furthermore, those who had to take both bus and train went up from 13.9 to 15.1 per cent

While the Transport Ministry declined to reveal the contents of the proposal by ComfortDelGro, it is expected to release results of its review by the end of the year, said The Straits Times.

SMRT President Saw Phaik Hwa told ST that a bus-versus-train set-up could mean duplication of resources and as a results, higher fares. She added that it may not be environmentally sound.

Ms Saw said it was unnecessary to overhaul the industry, but improvements could be made.




__________________
Fortune favors the Bold
tfwee


Veteran

Status: Offline
Posts: 581
Date:
Permalink  

Deregistration of Dormant Subsidiaries

ComfortDelGro Corporation Limited (the  Company ) wishes to announce that the following dormant subsidiaries of the Company have been struck off from the Register of Companies pursuant to Section 344 of the Companies Act, Chapter 50:

Company                                                 Country of Incorporation
Waterdale Development Pte Ltd                  Singapore
DelGro Assessment Centre Pte Ltd             Singapore
General Automotive Services Pte Ltd          Singapore
DelGro Engineering Pte Ltd                          Singapore

__________________
Fortune favors the Bold
tfwee


Veteran

Status: Offline
Posts: 581
Date:
Permalink  

Singapore's ComfortDelgro soars to all-time high on dividend hopes

__________________
Fortune favors the Bold
tfwee


Veteran

Status: Offline
Posts: 581
Date:
Permalink  

Extracted from Citigroup.

Lowering our FY07-FY09 forecasts by 4-5% We trim our forecasts as we have been too optimistic about the clawback of driver benefits for the taxi business. We also trim our profit forecast for NEL to account for higher scheduled maintenance costs this year. Our forecasts remain above consensus even after the changes, and we maintain our Buy (1L) rating with a target price of S$2.27.

Taxi operations to grow slowly this year While taxi competition has eased, the group is unlikely to claw back the driver benefits as yet this year. With a stable taxi fleet, earnings growth will be driven by cost cutting.

Steady ridership improvement and lower fuel costs to help progress in bus profits Fuel costs have been hedged up to the 1H 07 with the group looking to ad more hedges into the 3Q. Ridership and higher fares should help improve revenues and cushion the impact of the GST absorption.

NEL should be profitable in FY07 The strength of the recovery in profits at the NEL will be hampered by high maintenance costs this year. We expect a net profit of S$6m for the year compared to S$0.6m in FY2006.
Overseas operations to show stronger growth Improvements in operating KPI in the UK and new routes in Australia should help raise contribution. The groups China taxi and bus businesses are progressing well and should help drive growth from China. Comfort continues to look for M&A opportunities to bolster its investments in China.

__________________
Fortune favors the Bold
KK


Guru

Status: Offline
Posts: 1236
Date:
ComfortDelgro - UOBKayHian
Permalink  

27-Mar-2007

China Seen As Major Earnings Driver

Beijing and Shenyang are growth drivers for China operations. ComfortDelgro (CD) is aiming for a 50% share of revenue from overseas within the next few years, up from 44.3% in 2006. The China operations, which accounted for 6.8% and 13.1% share of 2006 revenue and operating profit respectively, will be a key driver. It should be noted that China’s revenue CAGR over the past three years is 28.5%, which is significantly stronger than CD’s overall revenue CAGR expansion of 14.4%. We believe the Beijing taxi operations (55% of 2006 China operating profit) will perform well as more taxis change from single shift to double shift in 2007. CD is also rolling out more routes for its Shenyang bus operations in 2007 – currently, only 30 routes out of a potential 68 are operating, which would further widen its operating margin. Overall, we expect China revenue to grow by 27% in 2007.

Potential for increased market share in Australia. CD’s UK operations (23.1% of 2006 operating profit) are stable and are expected to expand at a moderate 8.7% in 2007. Westbus, its Australian subsidiary (5.4% of 2006 operating profit), has the potential to increase its market share in New South Wales’ (NSW) bus network as there are government plans for consolidation among bus operators in NSW. CD, with its good track record and strong balance sheet, is a likely acquirer.

Another 5.4¢ of dividend could be declared to exhaust Section 44 tax credit. For 2006, CD declared a final gross dividend of 3¢ and a special gross dividend of 1.5¢, all payable in May 07. After this payout, CD has around S$20m of Section 44 tax credit left or S$111.1m gross dividend (or 5.4¢/share) to be paid before Dec 07.

Additional 10¢/share from synergies if CD gives up rail network and operates all bus services in Singapore. There have been newspaper articles highlighting such a possibility. Our analysis shows that this scenario could lead to synergies that will add 10¢/share to CD’s share price. Factoring in this 10¢ synergy and using sum-of-the-parts valuation, our target price for CD is S$2.80.

__________________
KK


Guru

Status: Offline
Posts: 1236
Date:
ComfortDelgro - CIMB
Permalink  

14-Feb-2007

Fuel hedges locked in for 1H07

• 4Q06 core net profit of S$56.5m (+15% yoy) came in 14% below our expectations, due to higher than expected costs. ComfortDelgro achieved FY06 core earnings of S$199m, down 1% yoy, on revenues of S$2.8bn, which was up 17% yoy. Profit including exceptionals came in at S$245m, up 21% yoy and in line with consensus expectations. Overseas operations contributed 44.3% of group sales (+2% pts yoy) and 42.4% of operating profits (+10% pts yoy).

• Local taxi operations still tough but stable. With ComfortDelgro continuing to offer plenty of benefits to its drivers, full year benefits of S$81m came in S$10m higher than our expectations. This led to the lower than expected core earnings.

• On the bright side, the group took advantage of the recent pull back in fuel prices. Fuel requirements are roughly hedged for 1H07. This was done in Dec 06 when fuel prices retreated sharply. We anticipate that ComfortDelgro took hedging positions when WTI crude dipped to around low US$50s per barrel levels.

• Overseas growth to gain traction in FY07. While SBS Transit locked in flat operating profits yoy (S$57m), overall bus operating profits rose 10% yoy to S$127m. This was mainly driven by overseas bus operations. We remain positive on operations in Australia and Shenyang especially.

• Stronger than expected dividend payout. ComfortDelgro declared 4.5 Scts of dividend in the final quarter against our expected 4 Scts. This came partially on the back of exceptional gains clocked on the CityFleet transaction.

• DCF target price raised to S$2.13 from S$1.86 (8.4% WACC; 1% termimal growth). We have tweaked our parameters to reflect updated country risk assumptions and rolled forward valuations by one year. Our WACC has been reduced slightly from 9.4% as we believe ComfortDelgro improve its execution in overseas operations. In addition, fuel hedging for 1H07 should lighten its risk profile. FY09 numbers have been introduced. Our forecasts are lowered 1% in FY07 but raised 1% in FY08. Although we are now expecting more driver benefits, fuel cost estimates are pared back to mitigate it. With dividend yields at 5%, we maintain Outperform on ComfortDelgro.

__________________
KK


Guru

Status: Offline
Posts: 1236
Date:
ComfortDelgro
Permalink  

BT, Published February 14, 2007

ComfortDelGro net earnings up 21% to $244m

Overseas operating gain now makeup 42% of total group figure

BUSES and taxis generated the bulk of ComfortDelgro's full-year net profit, which rose 21.1 per cent to $244.6 million and included an exceptional gain of $42.1 million.  Revenue for the year ended Dec 31, 2006 rose 11.8 per cent to $2.79 billion largely due to contributions from overseas bus and taxi operations, increased rail ridership and growth in diesel sales. 

Bus operations in Australia and Shenyang, and the taxi business in China and the UK provided most of the growth. The group's bus operations had an operating profit of $127.1 million on turnover of $1.37 billion, while its taxi operations had an operating profit of $107.8 million on turnover of $866.5 million.

Overseas revenue rose to 44 per cent of total group revenue - from 42 per cent previously - and managing director and group CEO Kua Hong Pak said the land transport giant is on track to achieve its goal of deriving half of total turnover from overseas operations by between 2008 and 2010.

At the same time, operating profit from overseas operations rose to 42 per cent of total group operating profit - from 32 per cent a year ago. The global vehicle fleet crossed the 40,000 mark, with half located overseas. ComfortDelGro is the world's second largest land transport company, after Laidlaw of North America, with about 50,000 vehicles.

And there is further growth potential in most of the overseas markets which the group is in, said Mr Kua, referring to countries like Ireland, Scotland, China and Australia, where there are opportunities to build up its bus and taxi fleets.

Australia was also a significant contributor last year with turnover of $131.6 million and operating profit of $16.5 million.

Fourth-quarter net profit soared 83.0 per cent to $90.2 million because of lower fuel prices and the $42.1 million exceptional gain from the share exchange with Cabcharge Australia, while revenue for the last quarter increased 6.5 per cent to $723.8 million.

For the full year, energy and fuel costs jumped 25.2 per cent to $196.0 million. The impact of higher global oil prices was also felt through taxi drivers' benefits, which include diesel subsidies and which shot up 94.2 per cent to $80.6 million.

Earnings per share rose to 11.82 cents from 9.79 cents previously. A final gross dividend of 3.0 cents and a special gross dividend of 1.5 cents per share have been proposed. Together with the interim dividend of 3.125 cents and special dividend of 3.375 cents paid earlier, the total dividend for 2006 would be 11 cents per share if the final and special dividends are approved.

__________________
KK


Guru

Status: Offline
Posts: 1236
Date:
ComfortDelgro - UOBKH
Permalink  

30 January 2007

Transforming Into An International Land Transport Player

China a major earnings catalyst. In FY05, China accounted for a small 10.9% share of Comfort Delgro Corp’s (CD) operating profit. However, given China operating margin of 22.4% (vs 13.3% for CD), there is a lot of scope for growth. The Guangzhou bus station operations is already reaping operating profit margin of 44%, and further extension of this bus station (on a nearby piece of land) could drive both revenue and widen margins. The Beijing taxi operation (8% market share), with operating margin of 30%, could record growth with increases in its taxi fleet size. After acquiring Shenyang Passenger Transport Group in Oct 05, Shenyang’s bus operations now has 1,763 buses and a 40% market share, and will turn profitable in FY08 as more bus routes are added and efficiency improved. We expect China operating profit to record a two-year CAGR of 35%, on the back of its wide exposure to 12 Chinese cities.

Acquisitions could strengthen foothold in Australia. CD acquired a 51% stake in Westbus, the largest private bus operator in New South Wales (NSW), Australia, in Aug 05. Out of 11 metropolitan regions, Westbus operates in three of them, and has a 66% share in one of these. Westbus accounts for 4.6% of CD's 9M06 revenue. We believe Westbus, with its strong parentage, could increase its market share as consolidation takes place among bus operators in NSW.

Singapore operations to remain stable. The taxi business is the largest contributor to CD's Singapore operating profit. We expect margins in this segment to remain stable, with potential fare hikes offsetting increased depreciation charges for higher-cost Euro 4 compliant taxis. Bus and rail revenue could benefit from the Singapore government's push to encourage the use of public transport, but the growth is expected to be mild.

Our sum-of-the-parts model gives a target price of S$2.28 for CD - we use DCF valuation for its Singapore bus and rail operations and PE valuation for the other businesses. This is inclusive of a potential 12¢ dividend, assuming CD utilises its entire Section 44 tax credits.

__________________
KK


Guru

Status: Offline
Posts: 1236
Date:
ComfortDelgro - UBS
Permalink  

Extracts fm UBS report dated 15-Jan-07,

Healthy ridership and a likely bumper divdend boost outlook

�� We raise our rating from Neutral 1 to Buy 2

We believe revenue could surprise on the upside, as ridership numbers have been strong. Also, concerns over the impact of high oil prices have eased and we think the stock could be re-rated soon because of the prospect of bumper dividends.

�� Bus and rail ridership numbers better than expected

We think this is sustainable. The strong economy is fuelling domestic consumption, immigration flows are robust, Singapore had a record number of vistors in 2006, and emergence of entertainment hotspots along the NEL route are all contributing factors. We see earnings upside potential also from the Australia bus division.

�� We expect bumper dividends to be announced with Q406 results

The market does not seem to have factored this in. The company will book in a S$41.7m divestment gain from its CityFleet sale and, we believe, would likely return at least 50% of the gains to shareholders. We expect total net dividends on 2006 earnings to amount to 9.2cents.

�� Valuation: Price target raised from S$1.66 to S$2.00

Our valuation is based on a blend of various parameters: DCF and DDM at the company's 7.0% cost of equity, net yield required on 2007 earnings (4.5-6.0%) and EV/EBITDA multiples of listed global transport peers (6.5x to 8.8x).



__________________
KK


Guru

Status: Offline
Posts: 1236
Date:
ComfortDelgro - DBSVickers
Permalink  

Extracts fm DBSVickers report dated 13-Nov-06,

Riding towards a brighter year

Overseas operations continue to expand: Turnover in 3Q06 from overseas operations grew from 41% a year ago to account for 44% of total Group turnover. More critically, operating profit from overseas operations grew from 38% a year ago to 45% of Group total in 3Q06. Strong growth from overseas operations helped to counter declining earnings in the Singapore market, which was largely due to poorer earnings from its taxi segment. As a result of higher overseas contributions, both taxes and MI also rose higher than we had projected.

Firmer earnings growth projected: Looking ahead, we believe ComfortDelgro should return to a growth path, driven by two key factors. Firstly, earnings growth momentum from overseas operations remains firm and we expect the Group to continue building on its successes in the U.K., Australia and China. Secondly, a more benign fuel price environment and stabilizing domestic taxi market should help stop the slide in Singapore earnings. We expect the Group’s core earnings to grow at double-digit pace over the next two years. The increased stake in Cabcharge Australia allows CD to equity account for Cabcharge’s earnings (CD has a 5% stake) and we believe that there is a possibility that CD could acquire more of Cabcharge in the future to help grow its overseas earnings contribution. The Group is currently in a near net-cash position.

Maintain BUY with target price raised to S$1.82. We maintain our BUY recommendation and with 2006 coming to a close, roll over valuation multiple to 15x FY08 earnings, to derive at a target price of S$1.82. We also expect CD to fully utilize its s.44 credits by 2007 and pay an attractive yield of 5.7% in FY07.



__________________
KK


Guru

Status: Offline
Posts: 1236
Date:
ComfortDelgro - Kim Eng
Permalink  

Extracts fm Kim Eng Report dated 4-Jul-06,

No Bumps From Fare Hike


  • Fare hike official - ComfortDelGro (CD) has announced the anticipated fare adjustments for its fleet of Comfort, CityCab and Yellow Top taxis. Their flag down rate will be raised by S$0.10 to S$2.50 from 6am, 10 July 2006, while the flag down rate of a Mercedes cab will go up S$0.20 to $2.80.
  • Peak period, distance charges up - There will also be distance-related fare adjustments. Trips of under 10km will be charged S$0.10 per 210m traveled compared to 225m currently. Trips over 10km will be charged at S$0.10 per 175m compared to 200m now. Peak hour surcharges will go up from S$1 to S$2, and the morning peak period will be 7am-9.30am on weekdays, from 7.30am-9.30am on Mondays to Saturdays previously.
  • No earnings drive, but more drivers likely - CD says the new fare adjustments are meant to supplement taxi drivers' incomes, but doesn't intend to hike rental charges. They decided to revise the fare structure after it had consulted Taxi Associations. While the fare adjustment doesn't directly benefit CD's earnings, the indirect benefits come in terms of retaining and even expanding its pool of drivers. The unutilised rate of CD's fleet of 15,000 Singapore taxis is 4%, down from 6-7%. However, some of this was due to the scrapping of older vehicles.
  • High fuel costs cause slippery earnings outlook - CD's local taxi and bus operations remain its key revenue drivers, but we expect growth to be driven by ventures in Britain and China. The stock has been trading near our fair-value of S$1.50/share, but its forward earnings forecast of 9.8% growth could potentially be lower due to persistently higher fuel prices. We maintain our HOLD rating. The company is expected to release its H106 results on 13 August 2006.


__________________
tfwee


Veteran

Status: Offline
Posts: 581
Date:
RE: ComfortDelgro
Permalink  

Extracted From CNA

ComfortDelGro raises taxi fares

Taxi fares will go up from next Monday.

From July 10, the flag-down fare for Comfort, CityCab and Yellow-Top taxis will be $2.50, up by 10 cents.

For the Mercedes taxis, the flag-down fare will rise by 20 cents to $2.80.

Taxi operator ComfortDelgro said that this is the first such increase in 12 years, and comes amid a difficult operating environment including rising fuel prices.

It added that the decision to revise the fare structure was made after it consulted its taxi associations.

ComfortDelgro also said that there would be a distance-related fare adjustment to better reflect the relationship between fuel costs and distance travelled.

Trips less than 10 kilometres will be charged at 10 cents for every 210 metres travelled compared to 225 metres currently.

For trips above 10 kilometres, the charge will be 10 cents per 175 metres compared to 200 metres now.

To correct the disequilibrium between demand and supply during peak periods, the peak hour surcharge will be raised from $1 to $2.

This is expected to reduce the waiting time during periods of high customer demand.

The morning peak-hour period will also be redefined to take into account the current five-day work week.

Currently, morning peak hours are from 7.30am-9.30am from Mondays to Saturdays.

From July 10, morning peak hours will be from 7am to 9.30am on weekdays, but Saturday mornings will no longer be defined as peak.

The evening peak hours remain unchanged.

The company said that the fare adjustments are to help its taxi drivers supplement their incomes.

It added that it would not increase its taxi rental charges.

ComfortDelgro is the biggest taxi operator in Singapore.

Other smaller players are expected to follow ComfortDelgro in raising their cab fares.

The umbrella body representing the taxi operators has supported ComfortDelgro's fare revision, describing it as fair and timely.

It also urges the other taxi companies to also adjust their fares as soon as possible.

The Taxi Operators' Association (TOA) notes that for the past two years, the operating cost of taxi operators have increased significantly due to the hike in diesel prices.

It also observed there is a high demand for taxis during the morning and evening peak hours.

It feels the announced fare revisions will appropriately relieve taxi operators of the increased cost of operation and also improve the taxi demand and supply situation for the customers.

The TOA is the umbrella body for the 6 taxi operators' associations, namely the CityCab Operators' Association, Comfort Taxi Operators' Association, Premier Taxi Operators' Association, SMART Cab Operators' Association, SMRT Taxi Operators' Association and Trans-Cab Operators' Association.

SMRT Taxis, when contacted, says it is studying the changes to the fare structure made by ComfortDelgro, and will make adjustments where applicable. - CNA/ir/ch

__________________
Fortune favors the Bold
ahkian


Member

Status: Offline
Posts: 69
Date:
Permalink  

Last Friday closing price is $1.48, things are getting exciting :D
Just a comment on this report for your consideration.


Base on the reported 11.4% revenue growth, they simply projected the '06 and '07 profits.


             '05       '06                   '07
profits   9.8c      1.114*9.8c     1.114*11c
                         ~= 11c            ~=12.1c
 


But is it that simple ??
1Q'06 earnings also includes a divestment tain.
For the same 1Q, comparing '05 and '06:
     - Raw materials up 30%
     - Fuel               up 55%

     - Revenue         up 11.4%
     - Profit Margin   Dn 10%


Assuming no growth of earnings for '06, at $1.48 P/E of '05 earnings(9.8c) is 15.1.
If you take a 10% discount of '05 earnings, at PE of 15, price will be $1.32.



__________________
ah Kian
KK


Guru

Status: Offline
Posts: 1236
Date:
ComfortDelgro - DMG
Permalink  

Extracts fm DMG Report dated 11-May-06,

ComfortDelGro posted a 1.3% YoY growth in 1Q06 net profit to S$55.3m, on the back of an 11.4% increase in revenue. The rise in fuel costs and enhanced benefits to taxi drivers dragged down net profit growth. Its recent acquisition of private hire company, Onward Travel, would allow ComfortDelGro to expand its reach in the UK. Overseas operations are expected to continue to drive growth, as ComfortDelGro continues to enhance its overseas operations. Maintain BUY.

1. 1Q06 results


  • Revenue grew 11.4% to S$602.5m, largely driven by strong contribution from overseas operations, higher diesel sales and increased rail revenue. Overseas operations contributed 40% to Group revenue in 1Q06. In FY05, overseas operations accounted for 38% of Group revenue.
  • The inclusion of revenue from ComfortDelGro CabCharge, improved UK bus operations from better rates on re-tendered routes, a higher operating taxi fleet in Beijing and more bus routes being operated by Shenyang Anyun Bus, contributed to the improved overseas operations.
  • With improved ridership along the North East Line, rail revenue increased 14.9% YoY. The North East Line operations recorded an operating loss of S$0.9m in 1Q06, compared with S$1.6m in 1Q05. While the high oil prices dampened its results, the higher selling prices also boosted revenue from diesel sales. Coupled with higher volume sold, diesel sales revenue was 21.9% higher YoY.
  • However, the higher operating costs dampened net profit growth. ComfortDelGro achieved a net profit growth of 1.3%. Net profit margin was 9.2% in 1Q06, compared with 10.2% in 1Q05. NAV per share was 67.44 cents at end 1Q06.

2. Stable and growing business


  • While revenue from its bus operations in Australia and UK are expected to be maintained, ComfortDelGro’s bus operation in Singapore is expected to improve as it continues to add bus routes. ComfortDelGro Shenyang Bus is expected to commence operations in 2Q06. This would contribute to higher revenue from its China bus operations. With the development of new towns along the North East corridor, rail ridership is expected to grow. This would help to boost rail revenue.
  • All other businesses are expected to record growth as ComfortDelGro takes on initiatives to improve its operations. ComfortDelGro has acquired a UK private hire company, Onward Travel for £0.7m (or S$1.9m). This is ComfortDelGro’s first acquisition of a private hire business in the UK. It would allow ComfortDelGro to expand its reach in the UK and offer both transport modes of taxi hire and private hire services to customers.

3. Recommendation


  • We estimate earnings of S$230.7m (EPS: 11.0 cents) for FY06 and S$258.4m (EPS: 12.1 cents) for FY07. At S$1.52, ComfortDelGro is trading at a PE of 13.8x FY06 and 12.6x FY07 earnings.
  • Maintain BUY.


__________________
ahkian


Member

Status: Offline
Posts: 69
Date:
RE: ComfortDelgro
Permalink  

From : http://www.comfortdelgro.com.sg/files/press/attachment/79.pdf


10 May 2006 – ComfortDelGro Corporation, through its Scottish subsidiary Computer Cab (Edinburgh) Ltd, today acquired private hire company Onward Travel Limited for £650,000 (approximately S$1.87million).


The acquisition marks ComfortDelGro’s first acquisition of a private hire business in the United Kingdom and will act as a template for future growth there.


 



-- Edited by ahkian at 00:32, 2006-05-11

__________________
ah Kian
ahkian


Member

Status: Offline
Posts: 69
Date:
Permalink  


From http://www.comfortdelgro.com.sg/files/press/attachment/78.pdf


 COMFORTDELGRO’S RESULTS FOR FIRST QUARTER ENDED 31 MARCH 2006


• Revenue rose by 11.4% to $602.5 million due to strong overseas contributions, growth in diesel sales and rail turnover


• Net profit increased by 1.3% to $55.3 million


• Overseas turnover, led by the United Kingdom and China, accounted for 40% of total Group turnover, up from 35% previously


• Overseas operating profit increased to 36%, up from 26% in the same period last year



-- Edited by ahkian at 00:24, 2006-05-11

__________________
ah Kian
tfwee


Veteran

Status: Offline
Posts: 581
Date:
Permalink  

Down $0.06 today after XD.

__________________
Fortune favors the Bold
ahkian


Member

Status: Offline
Posts: 69
Date:
Permalink  

Taking que from SIA's results today, suspect ComfortDelgro will also be badly hit by fuel cost.

__________________
ah Kian
ahkian


Member

Status: Offline
Posts: 69
Date:
Permalink  

Just some facts for your consideration


- 10 May : 1Q results to be announced after close of trading on that day.


- 28Apr : Approved Stock currently CD with 3c div,
             closure of books on 16May, payable 30may.
              That day, stock closed $1.61
               After long weekend, May2 it also closed at $1.61.


- 3 March 06 : Announced disposal of Waterbank Prop(48%) in Mansfield Development to Keppel Land for $54.9mil.
The statement says it has no effect on NTA or EPS for 2006.
Wonder what they will do with the cash ??
Not much change in share price after the announcement.


- 2005 dividends = 10c 
   Distributed 81.9% of profits, its policy is to distribute 50% of profits.
   @$1.57 per share its a yield of 6.3%.
   If they give out 50% of profits then its only about 3.9%.
   Dividends given out were higher in the last two years.


- 2005 P/E ratio = 16
           NTA/sh  = 65c
           ROE      = 15%
- share price 52 week hi/lo is $1.81/1.38


- Whats good :
     - Good conservative management
     - Steady dividends
     - relatively low LT debt
     - Overseas expansion
              2005 profits - 70.7% Singapore
                                - 16.8%  UK
                                - 10.9%  China
       Expansion in China and Vietnam more aggressive last 2 years.
       Expect more to come.



- Whats bad :
     - high fuel cost
        some form of hedging is in place, not elaborated.



- Summary from its web site


                                                                            2002 2003 2004 20052005


Turnover ($’mil)                                   1,701.8         1,847.1     2,097.8    2,262.1
Operating expenses ($’mil)                     1,519.8         1,722.3     1,812.6    1,989.4
Profit attributable to shareholders ($’mil)  149.3            133.9        199.4      201.9
Issued capital ($’mil)                             505.6            509.6        513.8     517.0
Capital and reserves ($’mil)                    1,178.4          1,264.1     1,274.1   1,345.0
Capital disbursement ($’mil)                    380.3             246.6       363.1     401.7
Internal funds generated ($’mil)               505.7             555.9         582.8    568.4
Earnings per ordinary share (cents)          7.4                6.6            9.7        9.8
Net asset per ordinary share (cents)        58.3               62.0         62.0       65.0
Return on shareholders’ equity (%)          13.2               11.0         15.7       15.4
Dividend per ordinary share (cents)          2.7                4.2           9.6        10.0
Dividend cover (number of times)             3.5               2.0           1.3         1.2


Recommendations:


If you think it will go up, BUY. If you think it will drop SELL.
BUT for this stock, my personal opinion is to go in with a longer term view to hold and reap profits from its overseas plans. So need to go in with a good price. I choose to be patient.



__________________
ah Kian
1 2  >  Last»  | Page of 2  sorted by
 
Quick Reply

Please log in to post quick replies.
REITData -> TalkStock -> SGX - Stocks -> ComfortDelgro
Tweet this page Post to Digg Post to Del.icio.us


Create your own FREE Forum
Report Abuse 		Powered by ActiveBoard