CDG tops land transport sector pick

ComfortDelGro poised for booming growth via overseas ventures, says Maybank Kim Eng.

"CDG remains our pick in the land transport sector, led by their overseas businesses," said Maybank Kim Eng in its latest land transport sector report. In contrast, it specifically recommended against SMRT due to its "crimping dividends" ahead of what it sees as profit-saving action from new CEO Mr Desmond Kuek.

"Earlier this month, CDG announced the AUD53m acquisition of Deane’s Bus Lines Pty Ltd and Transborder Express which will cement CDG’s position as the largest private bus operator in Australia. Management views Australia’s strong economy and continued population growth as growth drivers for transport services, and we are similarly optimistic about its prospects," it said.

"CDG’s Deane’s acquisition reinforces our expectations of overseas growth. We maintain our preference for CDG based on its global operations’ diversification," it added.