Tuesday, January 25, 2011

ComfortDelGro

ComfortDelGro:Awarded 800 new taxi licenses for RMB10k annually each by Chengdu govt, making co the 2nd largest taxi operator in Chengdu with 1050 taxis. China’s business is co’s most profitable with EBIT margins of approx 31%, and new fleet is expected to add around 1.5% to earnings...

Capex is small at $1.2m annually compared to existing annual outlay of S$450m. Macquarie maintains Outperform at TP S$2.00, highlighting co trades at 13x fwd P/E compared to SMRT at 19x and the discount is unwarranted with co adding new drivers of growth while SMRT will see pressure from the Circle Line due to difficulty of breaking even...

Co owns worldwide fleet size of 44.8k vehicles of which 36.0k are taxis and aims to derive 70% of total revenue outside Singapore in 4-6 yrs.

No comments:

Post a Comment