Comfort Delgro

Comfort Delgro: Results relatively in-line but dividend raised to 3.3c from 2.8c prev. FY2011 rev at $3.4b +6.4% yoy, net profit at $235.6m +3.1% yoy. For Sg, FY11 rev gains were driven by mainly taxi segment +8% yoy.

Co's bus business was 4.5% higher at $1.7b mainly due to a increase in Australia operations. Despite a growth in avg daily ridership of 6.0% for Sg ops, this was offset by 2.5% drop in avg fares. However SBS transit incurred an operating loss of $6.0m compared to prev yr’s profit of $14.9m due to fuel costs. Australia ops was 19.5% yoy at $445.8m due to more services and partly due to a stronger A$. Rev from overseas ops was approx 62.7% of segment revenues compared to 61.7% earlier.

Revenue from taxi segment was 5.8% higher mainly due to an increase in no of taxis and acquisitions. In Sg, rev was 7.6% higher on more replacement taxis, a larger fleet and higher volume of cashless transactions. China's contributions also rose due to the increase in licenses (800 in Chengdu, 50 in Suzhou and 65 in Nanning)

The NEL saw a 12.9% increase in avg daily ridership and 15.7% in Light Rail Transit which boosted rev by 10.5% to $134.4m slightly offset by 1.9% drop in avg fares. Automotive Engrg segment rev was higher at $449.7m but operating profit decline due to higher cost of materials.

Mgmt expects growth across most business segments and mkts except in UK where macro weakness will impact growth.

A proposed dividend of 3.3c has been declared, coupled with prev interim div of 2.7c brings total div for the yr to 6.0c. At closing price of $1.48, div yield is approx 4.1%.

Deutsche maintains Buy with TP$1.48. UOB KH maintains Buy with TP$1.75. Citi maintains Buy $1.64 up from prev $1.48.