ComfortDelGro - Still a Good Dividend Stock?
ฝัง
- เผยแพร่เมื่อ 9 มิ.ย. 2024
- Is ComfortDelGro still a worthwhile dividend stock? We take a look at the transport company's business model and whether it's on the road to recover after the pandemic. We also discuss ComfortDelGro's taxi business and how it's handling the competitive threat from ride-hailing apps. Can the company return to its pre-pandemic highs and continue to pay steady dividends? Find out in this episode.
00:00 Introduction
00:44 ComfortDelGro's business model
08:24 Will the taxi business ever recover?
13:39 Why not invest in SBS?
15:14 Valuation
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I like this episode. Learnt alot, especially on the part where Victor shared about the valuation stripping out the taxi business to get a more conservative estimate. Thank you
Thanks Yvonne! Glad you learned a lot!
Excellent and comprehensive presentation. Great job guys.
Thanks! Glad you liked it!
V comprehensive discussion about the pros & cons of comfort Delgro. I have learnt much from the session. Good Job, gentlemen !
You're most welcome, Shirley!
Very good video ! Does it make sense to cut loss on Comfort Delgro and move the funds to SBS Transit at this point in time ?
Great work, guys. My estimate is about $1.35 per share (4% yield) based on global recovery and stagnant taxi profit. But its exposure to the weakening A$ is significant following the bad submarine deal and China's retaliatory tariffs on wine, coals, iron ore, and other exports.
Thanks! Yes, some forex exposure there.
If you compare the private hailing and Taxi prices, I rather take taxi now
Yes, the prices are sometimes better for taxis. Unfortunately for Comfort, the mind share seems to have gone to Grab nowadays.
How about looking on the company that does the inspection? Vicom
I still want to know more about HKBN if possible. Thanks
Wld love to hear abt sats
Thanks! We'll consider this, Lionel
I would like to request for an analysis in popmart please:)
T Bill 5%+ are you sure? I thought recent one was 3.98% only?
Apologies! Yes, it is 3.98% which still beats ComfortDelGro's dividend yield at the moment.
Would prefer metered taxi over grab. Especially now Grab are very similar price with taxi anyway.
can you please talk about SATS
Thanks for the suggestion!
Definitely more upside than downside. Considering more than 50% revenue outside SG, low gearing etc. most importantly it a boring business that will never go away and overlook by analyst.
Tourism back. Stock is forward looking. There r chance of capital gain. It seems that the whole discussion mainly looking at dividend yield Vs t bill.
My biggest position - groan.......
Thought the co has invested overseas too.
Yes, ComfortDelGro has overseas operations which we mentioned.
I think they bought some firms in uk
How will increased in riderships n fares will increase their profitability since the bus/mrt contracts are fixed? Is there a variable component to their contracts?
Hi Wai Kiat, the bus system's revenue structure is mostly fixed as SBS receives a fee for managing the service while LTA retains all the fare revenue. On the other hand, the rail system's profitability and fare revenue are shared between SBS and LTA based on the New Rail Financing Framework (NRFF), which means that SBS's profitability is influenced by the ridership on the rail system. Hope this explains!
The last 4Qs OP trend for public transport segment is like a slippery slope...
Was encouraged to buy into this stock before the pandemic at around $2.70. From there it was a steady decline and I bailed out at around $1.40. Now below $1.20. Should never have touched it but glad I bailed out when I did. My worst investment to date. Wouldn't touch it again even at around a dollar.
why focus only on taxi? look at what the direction the managment is focusing on for the future!!!
So viewers understand a major risk of the company
taxi to zero is too extreme. Maybe 50% of pre pandemic taxi business. Couple with covid recovery and other businesses, is quite fairly valued
Yes, the taxi business is unlikely to go to zero. We're just showing an example of how to be on the conservative side when doing our valuation 😊
Personal anecdote, but I've switched back to taxi booking meter payment, no thanks to the price gouging from Grab. Comfort's booking availability is still pretty decent.
But I've also switched to taking public transport more instead of indulging in taxi/phv. ¯\_(ツ)_/¯
Yes, Comfort is still a solid choice! Unfortunately, they're no longer as dominant as they once were
According to Warren B such companies like SMRT or ComfortDelGro have "heavy assets maintenance and operation cost", moreover currently their trains, buses and taxi maybe old which need many resources like overheads and materials to maintain them. Personally, I will stay away and not to mention with the y-y lowing dividends.
Yes, good point on maintenance capex. Taxis are an asset on ComfortDelGro's balance sheet. However, the buses and trains are owned by the Singapore government.
"With effect from 1 April 2018, the subsidiary of the Group, SBS Transit Ltd (“SBST”), was granted a new licence to operate the Licensed Systems under the New Rail Financing Framework (“NRFF”) (Version 2) for a period of 15 years. If SBST applies for an extension, LTA may extend the term of the new licence for a further five years subject to terms and conditions as LTA may impose and SBST may accept.
The NRFF is an asset-light model whereby the LTA will make the capital investments in operating assets and thereby retain the ability and flexibility to decide on the additions, renewals and replacements and undertake long term planning for the rapid transit system network. It allows the LTA to respond more promptly to commuter needs, while relieving SBST of the cost of asset renewal and upgrade, and of procuring additional operating assets when ridership demand increases, in order to meet service level and reliability standards. The NRFF was first implemented in 2011 when SBST was awarded the tender for the Downtown Line."
www.comfortdelgro.com/documents/20143/411499/CDG+AR+2021_Financial+Statements.pdf/0852fae9-daac-1899-fd5c-a622b220e4a1?t=1649034917594
@@TheFifthPersonChannel Good point there from investor confidence news, perhaps a propaganda news. FYI, I see what I saw myself with my own eyes. I used to work for both SMRT and SBS ComfortDelGro. Seriously I don't have confidence in "their poor leadership" comprises of military personals, apart from heavy labor forces and heavy assets maintenance activities and the need to phasing out many old equipment. Trust a person, that have seen for themselves. I don't always believe in fake news.