ComfortDelGro

ComfortDelGro

Postby winston » Wed Jul 09, 2008 9:30 am

ComfortDelGro said it was in negotiations to acquire a bus builder in Australia, giving the transport firm a 35 percent share of the Australian bus building market.
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Re: ComfortDelGro

Postby millionairemind » Fri Jul 11, 2008 10:00 am

ComfortDelgro Inks MOU To Acquire Custom Coaches
ComfortDelGro Corporation, through its Australian subsidiary, ComfortDelGro Cabcharge (CDC), has entered into a MOU to acquire bus builder Custom Coaches, which will give CDC a 35% share of the Australian bus building market. CDC was set up in 2005 as a joint venture between ComfortDelGro and financial services provider Cabcharge Australia. The proposed acquisition will act as a base for the group when it opens its new manufacturing plant at Rutherford, Hunter Valley in early 2009. Custom Coaches has bus building factories for fabricated stainless steel buses in Sydney, Adelaide & Gold Coast.
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ComfortDelGro - Press Release 2Q 2008

Postby ishak » Wed Aug 13, 2008 6:27 pm

ComfortDelGro Q2 profit down 2.9% to $56.8m
By SAMUEL EE, Singapore Business Times 13 Aug 2008

ComfortDelGro Corp's net profit for the second quarter ended June 30, 2008, slipped 2.9 per cent to $56.8 million, weighed down by a combination of fuel and electricity costs as well as diesel subsidies to taxi hirers.

Its bottomline would have been hhurt even more if not for an exceptional item of $26.5 million for the gain arising from the exchange of its 16 per cent stake in CityFleet (UK) Pte Ltd for 2.46 per cent stake in Cabcharge Australia Limited.

Revenue for the quarter rose 5.8 per cent to $790.1 million on the back of strong growth in bus and rail ridership, mileages operated, and taxi corporate billings, with overseas turnover accounting for 44 per cent of total group turnover.

The land transport giant said high energy costs were largely responsible for Q2 operating profit plunging 37.7 per cent to $50.9 million. But the good news was that overseas operating profit accounted for a record 60 per cent of total group operating profit. In particular, the operating profit of the overseas bus businesses made up a whopping 89 per cent of the group's total bus operating profit.

Earnings per share in the second quarter were 2.72 cents, down from 2.81 cents in the previous corresponding quarter.

For the first half ended June 30, 2008, net profit was down 6.1 per cent to $107.0 million. Interim revenue was 5.8 per cent higher at $1.54 billion.

H1 earnings per share was 5.13 cents, down from 5.48 cents previously. An interim one-tier tax-exempt dividend of 2.6 cents per ordinary share has been declared.
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ComfortDelGro - Analyst CIMB-GK

Postby ishak » Thu Aug 14, 2008 3:38 pm

14 Aug 2008

ComfortDelgro Corporation (S$1.57) - 2QFY08 results - Overseas growth

Below. 2Q08 core net profit of S$30.8m (-47.4% yoy) was below consensus and our expectations. 1H08 net profit constitutes 38% and 40% of the respective annualised estimates. The variances were: higher energy and fuel costs, costs of materials and consumables, and diesel subsidies. Pretax margins slipped to 9.9% from 11.1% in 2Q07. Revenue growth of 6.2% yoy to S$785m was in line, driven by all segments. Including an exceptional item of S$26.5m relating to Cabcharge, net profit was flat at S$56.8m. Overseas operations were 44% of revenue in 2Q08. An interim dividend of S$0.026 was declared.

Plagued by fuel. Fuel and electricity costs rose by S$31m while an operating loss of S$11.3m was incurred on the sale of diesel to taxi hirers in Singapore. For Singapore bus operations under SBST, revenue rose 6.2% yoy to S$141.3m on higher ridership, but there was an operating loss of S$3.1m on account of higher fuel costs compared with a S$9.4m profit a year ago.

Operational review. Bus revenue rose 3.1% yoy to S$393.5m in 2Q08, driven by overseas operations. Australia revenue was up 30% due to the indexation of contract revenue, additional mileage operated and increased charter work. China and Singapore growth was led by higher ridership. UK Metroline was weaker by 6.6% yoy as a result of a weaker sterling pound against the S$. Taxi revenue rose 3.6% yoy to S$237.2m, on increased corporate billings and higher cashless transactions in Singapore and strong China contributions. UK operations slipped 13.3% yoy to S$57.2m on lower corporate bookings and a weaker pound vs. S$. Rail was up 16% yoy to S$26.8m on increased ridership; its operating profit rose 42% yoy to S$3.7m.

Forecasts adjusted; maintain Outperform. To reflect higher-than-expected fuel costs for FY08, we have cut our core net profit forecast for FY08 by 19.2%. However, we raise our FY09-10 estimates by 3.7-4.6% to factor in less-volatile fuel costs. Following this, our DCF-based target price rises to S$2.16 from S$2.09, on an unchanged WACC assumption of 9.3% and terminal growth of 2%. Maintain Outperform on the back of an attractive dividend yield of 5.5%.
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ComfortDelGro - Analyst DBS

Postby ishak » Thu Aug 14, 2008 3:41 pm

BUY S$1.57 STI : 2,811.79
Price Target : 12 months S$ 1.90 (Prev S$ 2.20)
Reason for Report : 2Q08 Results
Potential Catalyst: Oil price decline; overseas acquisitions.
14 Aug 2008

Things Can Only Get Better
Story: Excluding an exceptional gain of S$26.5m, Comfort Delgro’s 2Q08 results were below expectations, due mainly to the high cost of fuel dampening domestic earnings. Core profit in the quarter fell by 48% yoy to S$30.3m on top line growth of 6% yoy to S$785m. At half-time, core earnings fell by 29% yoy to S$80.5m on revenue expansion of 6% to S$1.5bn. An interim dividend of S 2.6cts was declared.

Point: Whilst overseas margin held up quite well at 9.7% at half-time vs 10% a year ago, CD’s domestic bus and diesel sales operations were adversely affected by significantly higher fuel costs, bringing down domestic margins from 12.3% a year ago to 7% as at 1H08. Turnover growth, on the other hand, was driven by higher ridership domestically (+10% yoy), whilst overseas operations only showed a modest growth (+1% yoy). Factoring in lower margins for the Group’s bus operations and diesel sales business, as well as the S$26.5m exceptional gain in 2Q08, we have lowered our earnings forecasts for FY08 and FY09 by 9% and 15% respectively. Looking ahead, with oil prices having eased off in recent weeks and the potential of a fare hike coming through, we are optimistic that margins over the next few quarters will improve.

Relevance: We maintain our BUY recommendation, as we believe core earnings can show improvement over the next few quarters, with a target price of S$1.90, adjusted to reflect our lower earnings and dividend forecasts. Our target price is still based on a target net yield of 4.5% for FY09, translating to c. 18x FY09 earnings. CD’s balance sheet remains healthy at less than 0.1x net gearing and there remains the potential for further overseas expansion or acquisitions to drive the Group’s long-term growth.
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ComfortDelGro - Analyst Kim Eng

Postby ishak » Thu Aug 14, 2008 3:48 pm

ComfortDelgro – 2QFY08 results (Gregory Yap 64321450)
Previous day closing price: $1.57
Recommendation: Hold (maintained)
Target price: $1.50 (reduced from $1.68)

Fuel remains the biggest bugbear
Reported earnings fell 3% YoY to $56.8m as operating costs continued to outstrip revenue (+5.7% to $785m). While growth in staff costs was more controlled this time (+1.3% vs +4% in 1Q08), energy costs jumped 60% to 11% of total costs, up from 7.7% in 2Q07 and 9.4% in 1Q08. No hedging was done again due to extreme oil price volatility during 2Q08.

More of the same, even overseas
In Singapore, bus operations was operationally in the red but managed a profit due to advertising & rental revenue, while taxi profits fell. A loss of $11.3m was recorded for diesel sales, up from $6m in 1Q08. Overseas operations did relatively better and accounted for a record 60% of operating profit but fuel costs and weakening currencies also took a toll.

Exceptional gain mitigated profit decline
If not for an exceptional gain of $26.5m from the share exchange between CityFleet UK and Cabcharge Australia, earnings would have been significantly lower at an estimated $30m, down 48% YoY. In June 2008, Comfort swapped a 16% equity stake in CityFleet, a UK-based radio taxi operator, for an additional 2.5% stake in Cabcharge.

Excluding fuel, ComfortDelgro did relatively well
Recognising that fuel costs are beyond the company’s control, we reckon Comfort did relatively well on an organic basis. Adding back the $11.3m loss from diesel sales and holding constant the energy bill, we estimate operating profit actually rose 14% YoY, outstripping the revenue increase despite weaker overseas currencies.

Need to see oil price stabilise before getting more optimistic
If crude oil continues its recent fall, 2Q08 should be the trough. With oil prices at US$113/barrel now, down from US$124/barrel on average in 2Q08, quarterly fuel cost should stabilise at $75-80m. But 2H08 earnings will still decline YoY, with the main question being how much and that depends on oil price. As such, oil prices have to stabilise before we can become more optimistic.
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ComfortDelGro - Analyst DMG

Postby ishak » Thu Aug 14, 2008 3:51 pm

ComfortDelgro: Fall in 2Q08 Earnings Due to Fuel Cost Surge (BUY\S$1.57\Target S$1.85)

CD recorded 2Q08 net profit of S$56.8m, down 2.9% YoY. Stripping out the 2Q08 one-time S$26.5m gain from restructuring, core net profit of S$30.3m would be down 48% YoY. 1H08 net profit of S$107m represents 53% of our reduced 2008 forecast. Turnover was up 5.7% YoY to S$785.2m.

Steady growth in global bus turnover. Global bus turnover was up 3.1% YoY to S$393.5m. However, bus operating profit of S$18.8m was down 35% YoY.
• Singapore bus turnover of S$141.3m was up 6.2% YoY, driven by ridership growth of 6.0% YoY to 2,286k rides per day. However, the Singapore bus business suffered a loss of S$3.1m versus 2Q07’s gain of S$9.6m, mainly due to the significant rise in fuel cost.
• The UK Metroline bus business recorded a 6.6% YoY turnover contraction to S$145.9m due to the weaker Sterling Pound. However, in Sterling Pound terms, turnover was up 5.3% YoY due to contract price adjustments, more mileages traveled and better quality incentive bonus.
• China bus turnover grew 6.3% YoY to S$13.4m. But a S$0.1m operating loss was recorded, vs S$0.2m profit in 2Q07 as government subsidies for fuel and concessionary travel would only be received in 2H08.

We have factored in a high 48% rise in 2008 energy and fuel costs. WTI crude oil price has risen from an average of US$72.4/bbl in 2007 to US$111.1/bbl in 1H08, or an increase of 53%. We have assumed 2008 CD energy and fuel costs of S$320m, which represents a 48% YoY increase.

Weaker 2008 earnings, but primarily due to high fuel costs. We cut our 2008 net profit forecast by 6.6% to S$203.8m, primarily due to the weaker Sterling Pound. Excluding the S$26.5m one-time restructuring gain, core net profit would be S$177.3m, or a 20% YoY decline. As the weakness is primarily due to high fuel costs, a fall in WTI price would bring earnings back up strongly.

Target price of S$1.85, derived from sum-of-the-parts valuation. There is therefore good
upside from current price level. In addition, based on a 85% payout ratio, CD offers an
attractive 2009 dividend yield of 5.9% (CD declared 2008 interim dividend of 2.6S¢/share).
Maintain BUY.
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ComfortDelGro

Postby ishak » Thu Aug 14, 2008 11:31 pm

Oil driving Comfort profits down
todayonline.com 14 Aug 2008

MORE commuters may be hopping onto buses, taxis and trains, but transport giant ComfortDelGro has recorded a dip in its second-quarter net profit — due to rising fuel and electricity costs.

Not even its thriving overseas operations could stop net profit between April and June from falling 2.9 per cent to $56.8 million, compared to the same period last year.

“The operating environment has proven to be difficult with the global economic slowdown, rising inflation and high oil prices,” said Comfort-DelGro group chief executive Kua Hong Pak. He did not expect the situation to ease soon, adding: “We will remain vigilant and will act on opportunities for growth when they present themselves.”

ComfortDelGro, operator of the world’s second-largest bus and taxi fleet, said that while revenue rose by 5.8 per cent last quarter to $790 million, operating profit dropped by 38 per cent to $51 million as expenses for fuel and electricity shot up by 60 per cent to $82.5 million.

Year-on-year, the profit decline would have been sharper had it not booked an exceptional $26.5 million gain after exchanging its shares in British taxi firm CityFleet for shares in Cabcharge Australia, operator of an electronic fare payment system.

In particular, ComfortDelGro’s Singapore bus operations posted a 6-per-cent rise in turnover to $141.3 million following a similar rise in ridership. However, this was more than offset by higher fuel costs, with the bus operations posting a quarterly loss of $3.1 million compared to a $9.6 million profit a year ago.

ComfortDelGro’s taxi business also saw a 10-per-cent rise in turnover, largely due to “increases in corporate billings and non-cash payment transactions”. The company noted that such transactions have “more than doubled” in the first half
of this year to 3.3 million compared to the corresponding period last year.

Under its rail business, the operator also recorded increases in the average daily ridership on its Northeast Line and Light Rapid Transit system by around 15 per cent.

With the exception of the United Kingdom, its other major overseas markets in China and Australia did well and accounted for the bulk of the increase in revenue. Overseas revenue accounted for 44 per cent of total group turnover and is expected to continue to drive growth.
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Re: ComfortDelGro

Postby kennynah » Fri Aug 15, 2008 2:16 am

Under its rail business, the operator also recorded increases in the average daily ridership on its Northeast Line and Light Rapid Transit system by around 15 per cent.

and whatever time of the day and night....the trains are jammed packed....fed up !
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Re: ComfortDelGro

Postby ishak » Fri Aug 15, 2008 2:17 am

Thats why i bought. :lol:
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