ComfortDelGro

ComfortDelGro: Expected stable results with full yr rev at $3.2b +5.1%yoy. Net profit at $228.5m +4.1%yoy. Operating margin improved slightly at 12.1% compared to prev yr 11.5%. Rev from all segments improved except for automotive engineering but negative translation loss decreased rev by $51.0m from original $206.1m..

Overall bus rev was still main contributor with 61.7% of rev and increased 5.3% to $1.61b, capex fell 35% for buses and increased 85% for taxis yoy partly due to the recent 800 taxi licenses. Dividend of 2.8c declared, payable on the 16th of May 2011, translating to FY10 yield of 3.5% as of yday closing of $1.56...

Going fwd, grp aims to derive 70% of rev from overseas, from current 43%. BNP maintains Buy with TP$1.98. Comfort trades at 14.3x current P/E while other transport operator SMRT is at 20.8x.