Broker Name: Maybank Research Pte Ltd
Date of Report: May 13, 2026
Excerpt from Maybank Research Pte Ltd report.
Report Summary
Stock: ComfortDelGro (CD SP)
Action: Downgrade to HOLD
Target Price: SGD 1.50 (12% lower; previously SGD 1.70)
Key Highlights:
- 1Q26 earnings below consensus; PATMI down 16.1% YoY to SGD 40.5m, only 17.4% of full-year estimates.
- Near-term cost challenges: Higher fuel costs in public transport, margin compression in taxi & private hire segments, and intensified competition.
- Public transport segment steady with fare hikes, but EBIT margin slipped to 4.6% due to rising costs.
- Taxi & private hire segment facing stronger headwinds; revenue and EBIT margin fell more than expected.
- Major investment announced: SGD 200m over 30 years for Next-Generation Driving Centre in Singapore, aiming to double market share and boost long-term financials.
- Decent dividend yield of ~5% provides partial support.
- Earnings forecasts for FY26-28 cut by about 17% to reflect cost pressures and competitive dynamics.
Implications/Analysis:
- ComfortDelGro faces near-term profit headwinds from rising fuel costs and competitive intensity, especially in its taxi/private hire businesses.
- Hold rating signals limited upside; investors should monitor cost trends and competitive landscape.
- Target price of SGD 1.50 reflects these challenges but is supported by the company’s stable public transport segment and attractive dividend yield.
Ticker: CD SP
above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can be the first to access the full report from the Maybank website : https://www.maybank-keresearch.com
