We are forecasting revenue for 2Q10 to come in S$800.5m, operating profit of S$72.5m and net
profit of S$46.4m. Operating expenses will likely remain high this year with the higher oil price
and labour costs. CDG will be releasing their 2Q10 results on 13.08.10 after the market closes.
Both bus and rail ridership grew for the first 6 months
Bus ridership continues to grow modestly 4.8% y-y in June and 2.4% y-y for the first half of
2010. However we are likely to see some erosion of bus ridership from the opening of circle line
which opened in July. We are forecasting bus ridership to grow 1% for the whole year to 838
million trips from 830 million trips. Rail ridership continues to impress in June growing 9.8% y-y,
bringing year to date growth to 12.8%. Public transport are seeing better growth numbers this
year mainly due to the sky high prices of COEs and increased connectivity of public transport.
Comfort Delgro : Buy to Hold (Downgrade)
Closing Price : S$1.58
Target Price: S$1.73 (+9%)
Source: Philips Securities
