ComfortDelGro

ComfortDelGro (CDG): OCBC believes earnings to remain resilient despite Brexit
- GBP depreciated 9.3% against the SGD. Based on CDG’s FY15/1Q16 exposure to UK/Ireland, impact to CDG’s total operating profit will be limited to 1.7%-2.1%.
- On the other area of concern- threat from private hire car services, CDG’s taxi hire-out rate was maintained at ~100%.
- OCBC cites that CDG’s earnings will continue to be resilient as long as hire-out rate sustain at ~100%.
- At the current price levels, OCBC thinks market has overpriced-in the potential impacts from both Brexit and threat of private hire car services.