Report Summary

• ComfortDelGro’s FY25 net profit grew 9.4% YoY to SGD230.3m, with proposed total dividends at 8.5 cents (80% payout ratio). The company maintains a defensive yield of 5.5% and retains its BUY rating with a target price of SGD1.70.
• London bus contract margins improved, and overseas expansion continues with new rail and bus tenders in Stockholm, Copenhagen, and UK regions. The Singapore taxi fleet is shrinking, but B2B segments are stable.
• ComfortDelGro is advancing autonomous vehicle (AV) and artificial intelligence (AI) capabilities, targeting 10% AV fleet transition by 2030 and enhanced AI operations in transport and maintenance.
• The group’s public transport segment remains its largest EBIT contributor, with increasing focus on diversification through M&A and global tenders. Strong cashflow supports robust dividend payouts.
• ComfortDelGro scores well on ESG metrics, with strong disclosures and progress on environmental targets, including fleet electrification and reduction in greenhouse gas emissions.
• Key risks include rising operating costs, taxi fleet competition, and slower ridership growth, but upside lies in faster taxi recovery and successful overseas expansion.
• Financial forecasts expect steady revenue and profit growth, with continuing investments in fleet upgrades and technology.