Thursday 14 May 2015

ComfortDelGro

UOBKayhian on 14 May 2015

FY15F PE (x): 14.9
FY16F PE (x): 16.2

1Q15 net profit was slightly below expectations, at 21% and 21.5% of our and consensus full-year estimates respectively due to lower revenue contribution from the UK/Ireland and Australia bus operations. ComfortDelgro’s (CD) revenue and net profit improved 1.3% and 6.8% yoy respectively as net margin edged up 0.3ppt. Maintain HOLD with a DCF-based target price of S$3.31 (from S$3.30). While fundamentals remain promising, we note that much of the attractiveness has been priced in after a 15% ytd rise in share price. CD is currently trading at 21x 2015F PE, close to its +2SD of 23x PE. Entry price is S$2.90.

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