The group recorded a net profit of $61.8m for 2020.
ComfortDelGro (CDG) has recorded a net profit of $46.1m in Q4 2020, bringing the full-year net profit to $61.8m, with lower revenue and impairments offset by government reliefs in the full year.
The research team at OCBC Investment Research (OIR) is optimistic of long-term recovery for CDG despite the impact of COVID-19 on taxi and rail businesses.
According to them, CDG “benefitted from the government’s Jobs Support Scheme.”
“For the Singapore public bus operations, CDG is not exposed to fare revenue, as the group operates under the bus contracting model. CDG’s net gearing has remained low, and is in a position to undertake acquisitions when the opportunity arises,” it adds.
OIR has maintained a “buy” recommendation on CDG with a fair value of $1.90.
“Management still holds a cautious stance given the ongoing uncertainty, whilst we note that the group’s net cash position means it has the option to capitalise on M&A opportunities when they arise,” the team said.
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