Comfortdelgro Corporation Limited (CD SP)
16 August 2021
Source: ComfortDelgro Corporation Limited
Shares are up 2.5% to S$1.66 as of 3:05pm this afternoon.
- 1H2021 net profit was S$91mn vs S$7mn loss in prior year
- 1H2021 net profit makes up 49% of full-year consensus estimates of S$187mn for 2021.
- Currently trades at attractive valuations of 19x FY2021 P/E and 15x FY2022 P/E
- Dividend yield is expected to improve from 3.2% in 2021 to 5.3% in 2022
- Adding on the decent first half results, the company announced it is pursuing an IPO for its Australian unit, to be completed in 4Q2021. The Australian unit operates public transport in Sydney, Brisbane and Darwin.
ComfortDelgro Corporation Limited announced on Monday, 16 August 2021 that it is pursuing an Initial Public Offering (IPO) on the Australian Securities Exchange (ASX) for its wholly-owned subsidiary, ComfortDelgro Corporation Australia Pty Ltd (CDC).
The move to IPO on the ASX comes after a two-week non-deal roadshow in June, which sought to introduce CDC to investors. CDC first began operations in Australia 16 years ago through the acquisition of the businesses of New South Wales (NSW) bus operator, Bosnjak Holdings.
ComfortDelgro currently operates in some of Australia’s fastest growing public transport markets including Sydney, Melbourne, Brisbane and Darwin, with a total fleet of over 4,400 vehicles including buses, coaches and ambulances.
