Singapore Stocks: ComfortDelGro Reports Upbeat Results Amid Sustained Transport Demand
This article is republished with permission from Tip Ranks .
01-Mar-2024
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In news on trending Singapore stocks, ComfortDelGro Corporation Limited (SG:C52) reported upbeat results for 2023, driven by sustained transport demand. The company recorded a net profit of S$180.5 million, marking a 4.3% increase from 2022. Additionally, revenue grew by 2.6% to S$3.88 billion in 2023.
Following yesterday’s result announcement, the shares traded up by 0.74% today.
ComfortDelGro is a global transportation company with an extensive fleet that includes buses, taxis, and various rental vehicles.
Insights from 2023 Results
ComfortDelGro's private taxi segment posted revenue growth of 3.6% as compared to the previous year. This was attributed to the taxi platform fees introduced by the company in July 2023, along with reduced taxi rental discounts in Singapore. The operating profit from this segment jumped by almost 60% to S$106.7 million.
In its public transport business, revenues grew by 2.5% during the year as a result of higher fares. However, the operating profit was down by 26% as the contracts were renewed at reduced margins in Australia and Singapore.
For 2024, the company is positive about its rail revenues due to increased ridership and fare hikes. However, its public bus turnover may suffer, following the loss of the Jurong West bus package to SMRT Corporation in September 2023. Meanwhile, the private taxi business is expected to continue to deliver solid numbers, driven by the Zig platform fees and commission hike.
C52 stock has received a Strong Buy consensus rating on TipRanks, backed by four Buys and one Hold recommendation. The ComfortDelGro share price forecast is S$1.56, implying 15.6% upside from the current price level.
