Comfort DelGro: acquired new site for its 3rd driving school in Liangjiang New Business District – a new economic development hub – in China. The 44.7k sm, 3 storey building is expected to be completed by year end, and will house 120 vehicles and cater to an initial mthly avg of 700 students for saloon cars, buses and trucks, similar to its existing Chongqing driving school. Total investment cost est at Rmb 165m (S$31.2m)…
Mgt expects demand to grow due to increasing affluence and points to the 250k new licenses issued last year in Chongqing alone as a sign. Move is in line with the co’s aim to derive 70% of revenue from overseas within the next 4-6 yrs.
Stock trades at 14.1x P/E, vs local peer SMRT’s 19.3x.
The majority of Street has Buy ratings with recent TP ranging btwn $1.75-1.95.
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