Hot Investment Profile: ComfortDelGro Corporation Limited

SGX Stock Code: C52 / Stock Price: 2.940

One of the biggest land transportation companies in the world, ComfortDelGro Corporation Limited was one of last week’s top five value traded stocks on the Singapore Exchange. Not only is ComfortDelGro Singapore’s market leader, it has also established considerable operations across China, and in the UK, Ireland, Australia, Vietnam and Malaysia with its global fleet of more than 46,500 vehicles.

Company Snapshot

ComfortDelGro is the result of a 2003 merger between land transport giants, the Comfort Group and the DelGro Corporation. Today, ComfortDelGro is a Singapore-based holding company offering eight main services:

1. Buses, comprising scheduled services and coach rental
2. Bus Stations, which manage public buses
3. Rail
4. Taxis, which provide taxis for rent as well as taxi bureau services
5. Automotive Engineering, comprising vehicular maintenance and repair, specialiszed vehicle construction, bus body assembly, engineering services and diesel
6. Inspection and Testing, which offers motor vehicle inspection, non-vehicular testing, inspection and consultancy
7. Car Rental and Leasing
8. Driving Centre, which operates a driving school with Japanese partner, Chofu Driving School

In Singapore, ComfortDelGro owns 75% of SBS Transit, which has a listing of its own on the SGX. ComfortDelGro Bus is Singapore’s biggest private transport company, which also has overland bus services going to West Malaysia.

Buses are likewise a primary service of ComfortDelGro in the UK, Ireland and Australia, as well as in China, where it also has taxi services in nine major cities. ComfortDelGro also has taxi services in Vietnam, as well as in the UK and Australia.

Stock Analysis

Bloomberg reports a -3.61% YTD return for ComfortDelGro, with a one-year return of -0.23%.

ComfortDelGro has a dividend-indicated gross yield of 3.09%, with earnings per share at SGD0.143.

Latest Developments

• This month, Daiwa Capital Markets says ComfortDelGro is better placed to leverage the positive structural shift in the Singapore public transport industry.
• In June, more than 160 ComfortDelGro cabbies — two of them women, went bald to support the Children’s Cancer Foundation.
• In April, ComfortDelGro Taxis clocked its 10 millionth booking job, setting new records for highest number of successful booking jobs in a single day (more than 130,000) and in a single hour (more than 5,500).
• In March, ComfortDelGro’s wholly-owned London subsidiary, Metroline Limited won “Bus Operator of the Year” at the 2016 London Transport Awards.

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