Asia Ex-J Consumer/ Transport analyst

Valerie Law, CFA

Equity Bottom-Up

ComfortDelgro (CD) has been under a slew of negative news - from potential losses of taxi drivers to failing to win the bid to operate the Thomson-East Coast Line (TEL) last few weeks. Since my note in July: <a href="https://www.smartkarma.com/insights/comfortdelgro-too-early-to-bottom-fish-as-ride-hailing-apps-continue-to-incentivize-and-innovate" target="_blank" data-smartkarma-citation="insights:12141">ComfortDelgro: Too Early to Bottom-Fish as Ride-Hailing Apps Continue to Incentivize and Innovate</a>, the company's share price has fallen by another 12%. Year-to-date, the fall in share price has been ~20%.While this is not a call for a structural U-turn on the company's share price, there are some positives that could lift the transport giant's share price. Given that its share price has fallen to the bottom of its five-year forward PE band, it is worth exploring four positive scenarios that could emerge to lift the share price of CD near-term.

ComfortDelgro (CD) has been under a slew of negative news - from potential losses of taxi drivers to failing to win the bid to operate the Thomson-East Coast Line (TEL) last few weeks. Since my note in July: ComfortDelgro: Too Early to Bottom-Fish as Ride-Hailing Apps Continue to Incentivize and Innovate, the company's share price has fallen by another 12%. Year-to-date, the fall in share price has been ~20%.While this is not a call for a structural U-turn on the company's share price, there are some positives that could lift the transport giant's share price. Given that its share price has fallen to the bottom of its five-year forward PE band, it is worth exploring four positive scenarios that could emerge to lift the share price of CD near-term.

ComfortDelgro: Negatives Mostly Priced-In; Time to Look at Some Near-Term Positives

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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ASEAN Plays Poised to Gain from China&#39;s Belt & Road Initiative (OBOR)

The taxi situation<ul>
<li>On Friday, local news media Today reported that over 2,000 ComfortDelgro taxi hirers are keen to join rival taxi operators partnering with Grab after the private-hire company offered rental rebates to entice them to switch over (Source: <a href="http://www.todayonline.com/singapore/over-2000-comfortdelgro-cabbies-express-interest-joining-grab" target="_blank">Today</a>).</li>
<li>The move is not totally unexpected, given that there are now more idle cars for Grab to take advantage of as compared to the past. Uber has supposedly 'given up' on 3,000 to 4,000 cars (Source: <a href="http://www.businesstimes.com.sg/transport/possible-deluge-of-used-cars-ahead-but-impact-uncertain" target="_blank">Business Times</a>) as they probably…</li>
</ul>

The taxi situation
On Friday, local news media Today reported that over 2,000 ComfortDelgro taxi hirers are keen to join rival taxi operators partnering with Grab after the private-hire company offered rental rebates to entice them to switch over (Source: Today).
The move is not totally unexpected, given that there are now more idle cars for Grab to take advantage of as compared to the past. Uber has supposedly 'given up' on 3,000 to 4,000 cars (Source: Business Times) as they probably…


ComfortDelgro's Drivers' Update and SBS' Failure to Win New Train Line Signal Share Price Pressures

<h2>On-the-ground </h2>While visiting a friend in KL recently, I spoke to 3 different private-hire drivers – all of whom use Uber and Grab apps in their cars. Tourists will usually use the Uber app, while locals prefer the Grab app, so most private-hire drivers have both apps in their car.Two of them I spoke to tells me they are quite satisfied with their take-home pay of about RM 5-6K a month (after deducting expenses), provided that they work hard and qualify for incentives. It appears that Grab is the…

On-the-ground While visiting a friend in KL recently, I spoke to 3 different private-hire drivers – all of whom use Uber and Grab apps in their cars. Tourists will usually use the Uber app, while locals prefer the Grab app, so most private-hire drivers have both apps in their car.Two of them I spoke to tells me they are quite satisfied with their take-home pay of about RM 5-6K a month (after deducting expenses), provided that they work hard and qualify for incentives. It appears that Grab is the…

Grab's Funding & Navigation Guide From Didi Means ComfortDelgro's Taxi Segment Still Pressured

Jardine Strategic Scheduled to Join STI on 18 September

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: Negatives Mostly Priced-In; Time to Look at Some Near-Term Positives

ComfortDelgro (CD) has been under a slew of negative news - from potential losses of taxi drivers to failing to win the bid to operate the...

Valerie Law, CFA

ASEAN Plays Poised to Gain from China's Belt & Road Initiative (OBOR)

Singapore Exchange Ltd (SGX)

Grab's Funding & Navigation Guide From Didi Means ComfortDelgro's Taxi Segment Still Pressured

On-the-ground While visiting a friend in KL recently, I spoke to 3 different private-hire drivers – all of whom use Uber and Grab apps in their...

Valerie Law, CFA

Jardine Strategic Scheduled to Join STI on 18 September

Singapore Exchange Ltd (SGX)

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

ComfortDelgro: Negatives Mostly Priced-In; Time to Look at Some Near-Term Positives

ComfortDelgro (CD) has been under a slew of negative news - from potential losses of taxi drivers to failing to win the bid to operate the...

Valerie Law, CFA

ASEAN Plays Poised to Gain from China&#39;s Belt & Road Initiative (OBOR)

Singapore Exchange Ltd (SGX)

ComfortDelgro's Drivers' Update and SBS' Failure to Win New Train Line Signal Share Price Pressures

The taxi situation On Friday, local news media Today reported that over 2,000 ComfortDelgro taxi hirers are keen to join rival taxi operators...

Valerie Law, CFA

Grab's Funding & Navigation Guide From Didi Means ComfortDelgro's Taxi Segment Still Pressured

On-the-ground While visiting a friend in KL recently, I spoke to 3 different private-hire drivers – all of whom use Uber and Grab apps in their...

Valerie Law, CFA

Jardine Strategic Scheduled to Join STI on 18 September

Singapore Exchange Ltd (SGX)

ASEAN Plays Poised to Gain from China's Belt & Road Initiative (OBOR)