Posted by: Lunner 1.24 K
Target Price

Maintaining profit growth of 5% over last 3 FY
Despite stable revenue shows prudent cost management but partly from more cost effective contracting services.

Increase ridership will drive bus & rail core business growth if cost management on the latter is successful.

The other core taxi business is facing headwinds with limited 1-3% growth Y-o-Y and have taken learnings from uber/grab with better benefits to consumers. What remains if it can continue to adapt to remain competitive long run.

Overseas business remain flat and are affected by weaker exchange rates.

Nevertheless with 70% payout, 4% yield with potential upside on growth through cost management. $2.57 remains the target price in near future.

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Li_Guang_Sheng, dagger and Lunner like this.
Sporeshare :

Reply to @Lunner : yup! driver has more preference to choose which operator that will provide them the best and flexible way that suit their lifestyle.

Lunner :

Reply to @Sporeshare : Interesting point as drivers will have more options but more complexity in business models. Long run drivers may prefer a more stable reliable and less complex model. Who will last the mile with cash thrown on rebates, idle cost, internal external cost management . Let's watch this unveil.

theintelligentinvestor :

Reply to @Lunner : Yes, hopefully Public Transport Services will be the saviour. Possible upside from BCM full year contribution, regulations for private car etc. Unlike SPH, CDG business is more defensive, bus, train, car inspection will be there for a long time.

Vested in CDG and Vicom.

Lunner :

Reply to @theintelligentinvestor : Valid risks. Assuming non core business fall 20%, bus/rail needs 5% growth to compensate. A 10% fall in taxi requires 5% Growth similarly. Bus rail business will be development will be one to watch.

Sporeshare :

Price likely to be under pressure with so many attention on Grab, Uber and new operator for electric taxi. Rev likely to be affected.

theintelligentinvestor :

Question is whether public transport can offset the expected lower in taxi, automotive engineering, inspection revenue? Challenging times ahead, CDG must focus on cost management and play offensive against Uber/Grab treat.

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yjlim avatar
Rank sm
Posted by: yjlim 21 K

Just my thoughts. No offence to anyone.

I have recently sold nearly half of my portfolio due to some trends that i have been seeing and hearing. I realized that there are more and more people are suddenly buying stocks and profiting from pennies. On top of that the recent chart for most of the stocks don't look good. I have a feeling a correction might be soon but no one can tell for sure. After all last year there was a crash already so i may be wrong.

So why do i only sold half and not all since i believe there will be a crash? Well cause only those half were in the green. While the other half were in the red. I do not really care about paper gain/loss. However i know one thing for sure is that once you sell a counter at paper loss, you loss. Some are in the green but i keep them as i believe they will CXG soon in the next few days.

I know blue chip can be keep for dividend but i believed that some blue chip can also go down and never recover. One example would be $Creative(C76). Thus the only stock remaining in my portfolio are $ComfortDelGro(C52) $CapitaMall Trust(C38U) $UOB(U11) $StarHub(CC3) $ThaiBev(Y92) $MM2 Asia(1B0).

What are your thought? Is the bull gonna chiong or is the bear coming back.

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rubberducky avatar
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Posted by: rubberducky 28.9 K

23 March Update - Entry $Chip Eng Seng(C29) at 0.74 to 11% portfolio. been to the Grandeur park launch, and like what im seeing from the management. Altho' they could have serve more food & drinks then.

$ComfortDelGro(C52) is in consolidating mode, if it dipped below 2.45, will increase %portfolio. As for $SingPost(S08), unlikely will add more %portfolio unless the current support level is breached.

$QAF(Q01) $SATS(S58) $SPHREIT(SK6U) $Frasers L&I Tr(BUOU) intrigued me, but still around 5-10% from entry price.

changed entry to $SingTel(Z74) to low 3.8x. so much uncertainties in telcos at the moment.

Cash 72% / 28% Nest

Estimated % In my nest-
$ComfortDelGro(C52) 25%
$SingPost(S08) 25%
$Raffles Medical(BSL) 25%
$Chip Eng Seng(C29) 10%
$SingTel(Z74) 8.5%
$Frasers Cpt Tr(J69U) 6.5%

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MasterLeong avatar
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Posted by: MasterLeong 4.05 K

Already holding 15,000 CDG $ComfortDelGro(C52)
Which is around 12% of my portfolio
I thinking of adding 5,000 more at 2.5 or 2.4 level
20,000 cdg will be around 16% top position, is this too much?
Reasons i like cdg
- 10 year track record of increasing earnings and dividends
- pe 16 is reasonable and low compared to other growth stocks like sats/thaibev/sgx blue chips that trade at 20-25 times earnings
- dividend yield 4%+
- ROE above 12%
- net cash biz
Potential risk
- uber/grab threat to taxi biz which is 30% of cdg earnings
- currency risk to UK and Aussie bus/cab biz

What are your views?

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