Comfort Delgro

Comfort Delgro: SCB strongly reiterate its O/p rating and raise its TP to $2.73, where they expect Singapore bus revenues and profitability should expand under the new model, with less capital intensive earnings and no revenue-risk, in the house view. Forecast an exceptional 20% dividend yield in 2016 from a disposal gain, as the government acquires CD’s bus assets from SBS Transit. Also expect an increase to a 90% payout ratio from 2017E, as CD’s Singapore’s bus business turns asset-light.