Asia Ex-J Consumer/ Transport analyst

Valerie Law, CFA

Equity Bottom-Up

<p>In this piece, we attempt to assess the battlefield for private-ride passengers in Singapore in 3Q16 and 4Q16 by counting the number of promotions offered by Grab, Uber and ComfortDelGro (CD). Besides intense competition in its taxi segments, CD's bus segment's EBIT (~36% of group) may not match last year's. In this piece, we attempt to answer the following questions:</p><ul><li>Why is the taxi segment important? (An overview of the business)</li><li>Assessing the battlefield for private-ride passengers in Singapore: Who is the winner?</li><li>What can we expect from CD's bus business?</li><li>Will its rail business be a bright spot?</li><li>With multiple headwinds and group ROCE peaking, can forward PE stay at current levels? </li></ul>

In this piece, we attempt to assess the battlefield for private-ride passengers in Singapore in 3Q16 and 4Q16 by counting the number of promotions offered by Grab, Uber and ComfortDelGro (CD). Besides intense competition in its taxi segments, CD's bus segment's EBIT (~36% of group) may not match last year's. In this piece, we attempt to answer the following questions:Why is the taxi segment important? (An overview of the business)Assessing the battlefield for private-ride passengers in Singapore: Who is the winner?What can we expect from CD's bus business?Will its rail business be a bright spot?With multiple headwinds and group ROCE peaking, can forward PE stay at current levels? 

Mirror Mirror on the Wall, Who Will Win the Taxi War?

<ul>
<li>Trans-cab (the second largest taxi operator in Singapore) slashed taxi rentals for cabbies by 34%. The company said that this is to help their drivers cope with the fall in income given the intense competition from Uber and Grab drivers. Source: <a href="http://www.channelnewsasia.com/news/singapore/trans-cab-slashes-taxi-rentals-amid-growing-competition/3399424.html" target="_blank">Channel News Asia</a>
</li>
<li>SMRT, the other major cab operator in Singapore, has recently offered to cut its taxi fleet rentals for new taxi drivers by almost 50%. Although they claim it is for a 'limited period', this promotion is likely to be re-used to…</li>
</ul>


Trans-cab (the second largest taxi operator in Singapore) slashed taxi rentals for cabbies by 34%. The company said that this is to help their drivers cope with the fall in income given the intense competition from Uber and Grab drivers. Source: Channel News Asia

SMRT, the other major cab operator in Singapore, has recently offered to cut its taxi fleet rentals for new taxi drivers by almost 50%. Although they claim it is for a 'limited period', this promotion is likely to be re-used to…


Bespoke Research on China and neighbouring regions, Bixmoor

Bixmoor

Bespoke Research on China and neighbouring regions

Bixmoor specialises in providing bespoke research to business, governments and the financial community on China and neighbouring regions. We seek to build long-term relationships with our clients, based on our expertise, our reliability and our determination to find the right solution.

Thematic (Sector/Industry)

<p>Despite winning several big orders, Chinese-supplied railway rolling stock does not have the best of reputations in Asia, whilst several prestigious track-laying projects have been beset with delays and technical problems. </p>

Despite winning several big orders, Chinese-supplied railway rolling stock does not have the best of reputations in Asia, whilst several prestigious track-laying projects have been beset with delays and technical problems. 

Founder, Riedel Research

David Riedel

Founder

Independent equity research on GEM Markets

Riedel Research

Riedel provides equity research and analysis to leading financial organizations. By becoming members of a region (Asia, Latin America, Emerging Europe or Global), organizations have access to an integrated set of services including:

Regular company coverage reports
Up-to-date investment decision advice (buy, hold, sell)
Monthly regional and global conference calls
Customized company reports and unlimited on-line access to the program's services.

Riedel provides research coverage of companies across the full range of market capitalization. Experienced research professionals in each market develop company reports and analysis as well as earnings models and projections. Ratings are Buy, Hold and Sell with a focus on compelling investment ideas - both long and short. Downloadable, dynamic earnings models are built to facilitate sensitivity analysis.

Please feel free to contact us for complimentary access to our written research.  We want to show you that our unique research flow can add value and help develop a long-term, high value-add relationship.

Riedel's model focuses on providing clients with unique insights and consulting in addition to unlimited access to all produced research This model allows members to receive exponential benefits for their retainer fees.

<ul>
<li>Obama continues the 'pivot to Asia' by attending the ASEAN meeting in Laos.</li>
<li>ASEAN is a critical component of SE Asian stability, partnership with the US and should be a united front in protesting Chinese intrusions into the South China Sea.</li>
<li>A high-profile spat with Philippine president Duterte was an unfortunate distraction and an unhelpful development for the Philippines which benefits from strong U.S. support.</li>
<li>Thailand and Malaysia look like the best opportunities in ASEAN in the medium-term.</li>
<li>BUY…</li>
</ul>


Obama continues the 'pivot to Asia' by attending the ASEAN meeting in Laos.
ASEAN is a critical component of SE Asian stability, partnership with the US and should be a united front in protesting Chinese intrusions into the South China Sea.
A high-profile spat with Philippine president Duterte was an unfortunate distraction and an unhelpful development for the Philippines which benefits from strong U.S. support.
Thailand and Malaysia look like the best opportunities in ASEAN in the medium-term.
BUY…


Takeaways from ASEAN - Investment Opportunities

Special Situations, Content Strategist, Smartkarma

Crispin Francis

Special Situations, Content Strategist

Smartkarma

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

Research Reinvented

Event-Driven

<p>Early this morning, 6 September 2016, SMRT released the <a href="http://infopub.sgx.com/FileOpen/Scheme%20Document%20dated%206%20Sep%202016.ashx?App=Announcement&amp;FileID=420331" target="_blank">scheme document</a> and <a href="http://infopub.sgx.com/FileOpen/Notice%20of%20Scheme%20Meeting%20dated%206%20Sep%202016.ashx?App=Announcement&amp;FileID=420330" target="_blank">notice of the scheme meeting</a> pursuant to Temasek privatization of SMRT.</p><div class="content-highlight"><p><strong>The scheme meeting will take place at 3.30 pm (SG time) on 29 September 2016. </strong></p></div><p>For the scheme to pass, SMRT will need</p><ol>
<li>75<em>% of votes (Temasek cannot vote); and </em>
</li>
<li><em>Majority in number (Headcount rule)</em></li>
</ol><h2>Key Dates</h2><table class="table table-striped"><tbody>
<tr>
<td><strong>Date</strong></td>
<td><strong>Event</strong></td>
</tr>
<tr>
<td>29 September 2016</td>
<td>Scheme meeting</td>
</tr>
<tr>
<td>14 October 2016</td>
<td>Court hearing to sanction the scheme</td>
</tr>
<tr>
<td>by 1 November 2016</td>
<td>Expected payment date</td>
</tr>
</tbody></table><h2>IFA's Report</h2><p>Rothschild…</p>

Early this morning, 6 September 2016, SMRT released the scheme document and notice of the scheme meeting pursuant to Temasek privatization of SMRT.The scheme meeting will take place at 3.30 pm (SG time) on 29 September 2016. For the scheme to pass, SMRT will need
75% of votes (Temasek cannot vote); and 

Majority in number (Headcount rule)
Key Dates

Date
Event


29 September 2016
Scheme meeting


14 October 2016
Court hearing to sanction the scheme


by 1 November 2016
Expected payment date

IFA's ReportRothschild…

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.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Comfortdelgro Corp (CD SP)

Mirror Mirror on the Wall, Who Will Win the Taxi War?

In this piece, we attempt to assess the battlefield for private-ride passengers in Singapore in 3Q16 and 4Q16 by counting the number of promotions...

Valerie Law, CFA

Price War on Taxi Rentals Has Begun

Trans-cab (the second largest taxi operator in Singapore) slashed taxi rentals for cabbies by 34%. The company said that this is to help their...

Valerie Law, CFA

Rolling Stock and Railway Track

Despite winning several big orders, Chinese-supplied railway rolling stock does not have the best of reputations in Asia, whilst several...

Bixmoor

Takeaways from ASEAN - Investment Opportunities

Obama continues the 'pivot to Asia' by attending the ASEAN meeting in Laos. ASEAN is a critical component of SE Asian stability, partnership with...

David Riedel

SMRT - Analysis of the Scheme Document

Early this morning, 6 September 2016, SMRT released the scheme document and notice of the scheme meeting pursuant to Temasek privatization of...

Crispin Francis

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)