ComfortDelGro to face lower earnings due to weak overseas operations
The analyst lowered its public transport margin for the final quarter.
Public transport firm, ComfortDelGro, will be hit by margin pressure as its overseas public transport operations continue to be subdued, RHB said.
In a report, RHB said there were higher operating costs in the firm’s UK public transport business.
“The UK public transport business reported higher operating costs as well as a mismatch in the timing and correlation of contract cost indexation,” said the Malaysian banking firm.
As this happens, ComfortDelGro itself said timing mismatch could persist in the fourth quarter of 2022.
The firm’s Sydney bus contract also came in with lower margins, RHB said.