by winston » Mon Feb 17, 2020 2:06 pm
not vested
ComfortDelGro ($2.17, down 2 cents), which operates in nine cities in China, announced that it has started seeing some impact on its operations, including the mandatory closure of its driving centre in Nanjing.
Located about 530km away from Wuhan, the epicentre of the coronavirus outbreak, Nanjing ComfortDelGro Xixia Driver Training Co., Ltd, has been instructed by the authorities to suspend
all operations from 28 January 2020 as a precautionary measure.
The 60%-owned subsidiary has about 600 students enrolled. The Group’s other driving school, Chengdu ComfortDelGro Qing Yang Driving School Co., Ltd, which is located 1,150km from Wuhan, continues to operate but students have been told that they can defer all confirmed test dates in February for a full refund if they so wish.
Its 60%-owned bus station in Guangzhou, Tianhe Bus Station, has seen a reduction of about 15% in the number of bus trips operated for the Chinese New Year period compared to the same period last year.
To-date, 24,000 trips have been operated, with ridership of about 486,000.
The Group also operates taxi services in eight Chinese cities – Beijing, Jilin, Shenyang, Chengdu, Shanghai, Suzhou, Nanjing and Nanning – with a fleet of 11,000.
Impact thus far as been minimal although drivers have reported a drop in demand for their services.
In Australia and the United Kingdom (UK), where the Group also operates bus and taxi services, the situation has remained stable, although stepped up precautions too have been taken.
At $2.17, market cap is S$4,743mln, trailing P/E is 15.8x, P/B is 1.9x, dividend yield is 4.9% and FY18 dividend payout ratio is 75%.
Source: Lim & Tan
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