ComfortDelGro Expands Global Footprint, Delivers Strong Financial Results

Lim & Tan Securities | March 26, 2025
ComfortDelGro, the leading multi-modal transport operator, has reported a stellar performance in its FY2024 annual report. The company’s revenue grew 15.4% to S$4.48 billion, while Profit After Tax and Minority Interest (PATMI) climbed 16.6% to S$210.5 million.

Expanding Global Presence

The key highlights from ComfortDelGro’s report include:
Awarded three bus franchises in Victoria, Australia, valued at A$1.6 billion over 10 years, representing a 30% growth in the company’s Victoria public bus business.
Expanded beyond London, with Metroline winning and starting operations of four public bus franchises worth £422 million in Greater Manchester, UK, increasing its overall portfolio by 30%.
Grew international rail operations across Singapore, New Zealand, France, and Sweden from a network of 83km in 2021 to 343km in operation and under mobilization to date.
Awarded an 11-year contract to operate and maintain the Stockholm Metro in Sweden, ComfortDelGro’s largest rail operation outside Singapore.
In Singapore, the Jurong Region Line (JRL) contract was awarded to the SBS Transit and RATP Dev joint venture, expanding SBS Transit’s rail network from 83km to 107km.

Strong Financial Performance

The company’s improved earnings in the Public Transport and Taxi & Private Hire business segments were driven by the renewal of bus contracts at better margins in the UK, as well as higher fares and ride-hailing commission rates for taxis and private hire vehicles.
Key financial highlights:
Group revenue of S$4.48 billion in 2024, up 15.4% from S$3.88 billion in 2023.
PATMI climbed 16.6% to S$210.5 million in 2024, compared to S$180.5 million in 2023.
Final dividend raised to 4.25 cents per share, bringing the total dividend for 2024 to 7.77 Singapore cents per share.
Dividend payout ratio of 80% of PATMI, in line with the Group’s updated dividend policy of paying out at least 70% of PATMI.

Outlook and Valuation

At its last traded price of $1.47, ComfortDelGro is capitalized at $3.2 billion and trades at 13x forward and 12x prospective PE, respectively. The company offers a decent dividend yield of 5.3%, and the consensus target price of $1.73 implies a 1-year potential capital return of 18%.
Lim & Tan Securities maintains an “Accumulate” rating on ComfortDelGro, citing the company’s attractive yield and decent growth of 15-20% going forward.