Asia Ex-J Consumer/ Transport analyst

Valerie Law, CFA

Equity Bottom-Up

This insight is part of an ongoing series discussing issues faced by traditional transport companies such as ComfortDelGro (CD) due to innovation and competition.  I took a look at CD"s FY16 full-year results and uncovered pressure points not only within its taxi segment in 4Q16, but also its bus segment - shown by management's recent move to lump this with its rail segment, even though they were separately disclosed previously.Such moves and a couple of others discussed later in this article signal the company's transition into a new era - an era whereby governments move towards more competitive and innovative transportation frameworks, and competitors may not necessarily be from the same industry (eg. Uber and Grab). This article is divided into three parts:1. Summary of results by key segments - public transport services, taxi and automotive engineering.2. Outlook for its key segments3. Leadership change

This insight is part of an ongoing series discussing issues faced by traditional transport companies such as ComfortDelGro (CD) due to innovation and competition.  I took a look at CD"s FY16 full-year results and uncovered pressure points not only within its taxi segment in 4Q16, but also its bus segment - shown by management's recent move to lump this with its rail segment, even though they were separately disclosed previously.Such moves and a couple of others discussed later in this article signal the company's transition into a new era - an era whereby governments move towards more competitive and innovative transportation frameworks, and competitors may not necessarily be from the same industry (eg. Uber and Grab). This article is divided into three parts:1. Summary of results by key segments - public transport services, taxi and automotive engineering.2. Outlook for its key segments3. Leadership change

ComfortDelGro FY16 Results: An Era Where Competition Hits a Higher Gear

ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Thematic (Sector/Industry)

This week we feature an interview with <a href="https://www.smartkarma.com/profiles/35" target="_blank" data-smartkarma-citation="accounts:35">Manu Bhaskaran</a> and his team at Centennial Asia, including <a href="https://www.smartkarma.com/profiles/48" target="_blank" data-smartkarma-citation="accounts:48">Jason Tan</a> and <a href="https://www.smartkarma.com/profiles/49" target="_blank" data-smartkarma-citation="accounts:49">Asees Bajaj</a> to canvass their views on South East Asia, with Indonesia a clear leader in their estimation. The volume of output of Insight Providers across ASEAN has picked up significantly this week, so buckle up and enjoy the ride.<a href="https://www.smartkarma.com/profiles/48" target="_blank" data-smartkarma-citation="accounts:48">Jason Tan</a> sees the economic gloom in Singapore starting to clear, with a pick up in bank loan growth, though employment prospects still look bleak in <a href="https://www.smartkarma.com/insights/singapore-the-gloom-is-clearing-but-slowly" target="_blank" data-smartkarma-citation="insights:8596">The</a>…

This week we feature an interview with Manu Bhaskaran and his team at Centennial Asia, including Jason Tan and Asees Bajaj to canvass their views on South East Asia, with Indonesia a clear leader in their estimation. The volume of output of Insight Providers across ASEAN has picked up significantly this week, so buckle up and enjoy the ride.Jason Tan sees the economic gloom in Singapore starting to clear, with a pick up in bank loan growth, though employment prospects still look bleak in The…

The Week that Was in ASEAN@Smartkarma - Politics, Pain and Soap Operas

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

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§  The SGX Maritime &amp; Offshore Services (MOE) Index, a benchmark for the MOE Sector, has rebounded 19.7% from its trough on 1 Sep 2016 in tandem with the recovery of crude oil prices, which may be an indication that the sector could be bottoming out.
 
§  Despite the rally, the 18 constituents within the SGX MOE Index are trading at an average current price-to-book (PB) ratio of 0.7x, with 10 of them trading below their book values.
 
§  Consensus estimates are expecting oil prices to stabilise and…
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§  The SGX Maritime &amp; Offshore Services (MOE) Index, a benchmark for the MOE Sector, has rebounded 19.7% from its trough on 1 Sep 2016 in tandem with the recovery of crude oil prices, which may be an indication that the sector could be bottoming out.
 
§  Despite the rally, the 18 constituents within the SGX MOE Index are trading at an average current price-to-book (PB) ratio of 0.7x, with 10 of them trading below their book values.
 
§  Consensus estimates are expecting oil prices to stabilise and…



SGX's MOE Sector Sustains 4Q16 Momentum into 2017

In our inaugural ASEAN weekly offering, we kick off with an interview with one of our most experienced and erudite economists on the platform, <a href="https://www.smartkarma.com/profiles/612" target="_blank" data-smartkarma-citation="accounts:612">Prasenjit K. Basu</a>. and canvas his views on the South East Asian Economies. Indonesia remains his favourite economy <a href="https://www.smartkarma.com/insights/indonesia-firing-on-all-cylinders-but-one-with-inflation-at-a-60-year-low" target="_blank" data-smartkarma-citation="insights:7934">Indonesia: Firing on All Cylinders (But One) With Inflation at a 60-Year Low</a> in the ASEAN region for 2017, followed by Vietnam <a href="https://www.smartkarma.com/insights/vietnam-export-champion-is-allowing-its-banking-problems-to-fester" target="_blank" data-smartkarma-citation="insights:7221">Vietnam: Export Champion Is Allowing Its Banking Problems to Fester</a> . Singapore <a href="https://www.smartkarma.com/insights/singapore-robust-4q-2016-in-the-bag" target="_blank" data-smartkarma-citation="insights:8266">Singapore: Robust 4Q 2016 in the</a>…

In our inaugural ASEAN weekly offering, we kick off with an interview with one of our most experienced and erudite economists on the platform, Prasenjit K. Basu. and canvas his views on the South East Asian Economies. Indonesia remains his favourite economy Indonesia: Firing on All Cylinders (But One) With Inflation at a 60-Year Low in the ASEAN region for 2017, followed by Vietnam Vietnam: Export Champion Is Allowing Its Banking Problems to Fester . Singapore Singapore: Robust 4Q 2016 in the…

The Week that Was in ASEAN@Smartkarma - Groceries, Noodles and Gossip Girls

In a follow-up to the earlier piece, <a href="https://www.smartkarma.com/insights/delgro-it-s-supply-vs-demand-silly-billy" target="_blank" data-smartkarma-citation="insights:8201">Delgro: It’s Supply Vs Demand, Silly-Billy!</a> , the long-awaited figure for private rental cars is finally revealed. At 51,000+  in fleet size as at the end of 2016, the figure represents an increase of 75% YoY. This is nearly double Singapore's taxi fleet size.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/019/798/original/Taxis%20vs%20rental%20cars%20vs%20population.png?1485399081" class="editor-image img-responsive" data-smartkarma-image-id="19798"></figure>Source: LTA (Land Transport Authority)<ul><li>Singapore's taxi fleet on the other hand, has shrunk 2.6% YoY (see table below). This is in line with our thesis that taxis on a whole are losing market share to…</li></ul>

In a follow-up to the earlier piece, Delgro: It’s Supply Vs Demand, Silly-Billy! , the long-awaited figure for private rental cars is finally revealed. At 51,000+  in fleet size as at the end of 2016, the figure represents an increase of 75% YoY. This is nearly double Singapore's taxi fleet size.Source: LTA (Land Transport Authority)Singapore's taxi fleet on the other hand, has shrunk 2.6% YoY (see table below). This is in line with our thesis that taxis on a whole are losing market share to…

Singapore

ComfortDelGro Corporation Limited provides bus, taxi, car leasing and rental, automotive engineering, maintenance services, and diesel sales.  The Group also provides investment trading and operates vehicle inspection and assessment services, and advertising services.

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Comfortdelgro Corp (CD SP)

ComfortDelGro FY16 Results: An Era Where Competition Hits a Higher Gear

This insight is part of an ongoing series discussing issues faced by traditional transport companies such as ComfortDelGro (CD) due to innovation...

Valerie Law, CFA

The Week that Was in ASEAN@Smartkarma - Politics, Pain and Soap Operas

This week we feature an interview with Manu Bhaskaran and his team at Centennial Asia, including Jason Tan and Asees Bajaj to canvass their views...

Angus Mackintosh

SGX's MOE Sector Sustains 4Q16 Momentum into 2017

§ The SGX Maritime & Offshore Services (MOE) Index, a benchmark for the MOE Sector, has rebounded 19.7% from its trough on 1 Sep 2016 in...

Singapore Exchange Ltd (SGX)

The Week that Was in ASEAN@Smartkarma - Groceries, Noodles and Gossip Girls

In our inaugural ASEAN weekly offering, we kick off with an interview with one of our most experienced and erudite economists on the platform,...

Angus Mackintosh

Supply Vs Demand - The 2016 Verdict

In a follow-up to the earlier piece, Delgro: It’s Supply Vs Demand, Silly-Billy! , the long-awaited figure for private rental cars is finally...

Valerie Law, CFA

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