Wednesday, 28 March 2018

2018 a better year for Comfortdelgro?





  • Government hint on rising fare
  • New rail asset light model to further increase bus segment's revenue
  • Downtown to generate profit
  • M&A in 2017 to contribute to full year profit
  • More M&A opportunities
  • Scrap LGR deal
  • Grab may concentrate on SEA business rather than fight CDG
  • Taxi vs PHV competition should normalize with Uber's exit

I did a conservative DCF with a -1.7% revenue for the next 5 years and 0 growth till perpetuity with a 12% discount rate. The fair value is $2.27.

Will CDG be so bad to have 0 growth and a shrinking top line?

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