ComfortDelgro

ComfortDelgro: DMG maintains Buy, but reduces TP to $1.70 from $1.81. Though positive on grp’s award of the DTL in the long run, believe it will incur initial start up losses. Expect DTL to be loss making up to 2019, before turning profitable. Reduce FY13 earnings f/cast by 5%, and TP but continue to favour grp over SMRT for its more attractive valuation with FY12 P/E of 11.3x, as well as its overseas growth potential.