Comfort DelGro

Comfort DelGro: Transport minister Lui Tuck Yew announced that the DTL 2 MRT line will be opened in 1Q16, a few months ahead of schedule. As at 2QFY14, Comfort recorded loss of $6.2m from its DTL 1 operations . With the opening of DTL 2 brought forward by a months, OCBC believes this is good for Comfort as this would logiically allow it to break even earlier . Ridership shoudl improve significantly given that DTL 2 comprises 12 stations and one depot, including four interchange stations. Advertisement and rental business segments , which offer higher margins, could further boost revenue and profitability. The house maintains Buy with TP $2.92