How ComfortDelGro's cost-plus model can buoy its bus business

It'll be a less bumpy road.

According to Nomura, overall, ComfortDelGro's management believes the Singapore bus business will turn for the better. The key premise behind that view is a belief that the government could potentially shift towards a cost-plus model.

This is viewed by management to be better for business due to the elimination of revenue risk. Management guided that EBIT margins under a costplus model would be in the mid-to-high single-digit range

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