- 1Q25 results were within expectations. Revenue/PATMI was 24%/20% of our FY25e forecast. 1Q is typically a seasonally lower due to lower contributions from Scotland coach services and CMAC.
- 1Q25 operating earnings rose 45% YoY to S$81.5mn. Excluding acquisitions, operating earnings rose 27.5% YoY, due to a significant turnaround in the UK. Operating earnings spiked from S$0.9mn to S$8mn with the renewal of London bus routes and the contribution from the new Metroline Manchester contract.
- We maintain our FY25e forecast and DCF target price of S$1.68. Our BUY recommendation is unchanged. ComfortDelGro is delivering more stable and visible growth with acquisitions, new and re-pricing of bus contracts in the UK. The dividend yield of 6% is attractive as the company maintains a high payout ratio of 80%.
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