ComfortDelgro

ComfortDelgro: According to a channelnewsasia report, commuters will not be able to pay for their cab fares using Visa cards from July 15. Maybank KE estimates that the termination of this payment mode would have minimal impact on the profits for its taxi business in Singapore. House estimates that cashless transactions contribute approximately 6% of profits for ComfortDelgro’s taxi business in Singapore and the majority of the contributions are from NETS, as market penetration for the use of Visa cards had been low. Maybank KE reiterate its positive view on ComfortDelGro, offers a defensive business exposure and currently trades below its historical valuation levels at only 15x FY14E P/E (long term average: 16x). House has a BUY rating with TP of $2.33.