🎯 Is ComfortDelgro (SGX: C52) worth checking out?
$ComfortDelGro(C52.SI)$ ComfortDelGro: Global Transport Giant Embraces the EV Shift While Powering Ahead
📊 Robust Q1 2025 Performance
For 1Q 2025, the transport group recorded S$1.17 billion in revenue (+16.4% YoY) and operating profit of S$81.5 million, marking a 45.5% YoY uplift. Net profit reached S$48.3 million, up 19%. Excluding acquisitions, core earnings grew 27.5%, boosted significantly by renewed UK bus contracts and Metroline Manchester’s launch.
🚌 Strategic Acquisitions Power Growth
FY2024 saw three major overseas acquisitions: London’s premium Addison Lee, UK ground transport specialist CMAC, and Australia’s A2B. These bolt-on deals are earnings‑accretive, expanding revenue streams and increasing overseas exposure. In fact, overseas revenues contribute >50% of total revenues for the first time in the Group’s history.
🔋 EV Commitments and Sustainability Push
ComfortDelGro secured a S$100 million green loan with DBS to fund 135 electric buses for Metroline in the UK. In Singapore, the ENGIE partnership reached 1,000 EV charge points and the Group has started electrifying its own fleet. These investments not only enhance ESG credentials but also future-proof operations as governments tighten carbon targets globally.
📊 Shareholder Returns and Capital Strategy
A final dividend of 4.25¢ brought FY2024 total payouts to 7.77¢ - translating into a ~5.5% yield - reflecting strong capital discipline. Net gearing stands modestly positive, even after asset-heavy acquisitions, while free cash flow remained resilient at ~S$102 million in FY2024.
🏙️ Subsidiary Strength and Platform Synergies
ComfortDelGro owns majority stakes in two SGX-listed subsidiaries - SBS Transit and VICOM Limited. SBS Transit underpins local bus and rail operations and continues to benefit from fare revisions and stable public transport contracts while VICOM provides vehicle inspection and testing services with consistent margins and defensive cash flows.
As ComfortDelGro rolls out new digital and ride-hailing offerings, it must now contend with the entry of GrabCab - Grab’s licensed street-hail service that directly challenges the traditional taxi segment.
The Group’s multi-pronged platform, including ComfortDelGro Taxi’s digital booking channels and enterprise fleet partnerships, will be key in maintaining market share.
📈 Conclusion
Backed by strong core earnings, smart acquisitions, and accelerating EV initiatives, ComfortDelGro is positioning itself for sustainable growth across mature and emerging transport verticals.
One to watch as it defends local turf and expands abroad with green momentum.
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