August 2014

28 August 2014
Comments Off
.

Results Announcement

  • 5 Aug 14 : SingPost (Q115) – EPS 1.863ct vs 1.775ct (Q114) ; Div 1.25ct (no change)
  • 5 Aug 14 : Starhub (Q214) – EPS 5.5ct vs 5.85ct (Q213) ; Div 5ct (no change)
  • 11 Aug 14 : HLFin (Q214) – Annualised EPS 12.69ct vs 15.74ct (Q213) ; Div 4ct (no change)
  • 12 Aug 14 : SBSTransit (Q214) – EPS 1.61ct vs 1.02ct (Q213) ; Div 1.25ct vs 0.9ct (1H13)
  • 13 Aug 14 (AM) : STEng (Q214) – EPS 4.28ct vs 4.78ct (Q213) ; Div 4ct vs 3ct (1H13)
  • 13 Aug 14 : ComfortDelgro (Q214) – EPS 3.55ct vs 3.26ct (Q213) ; Div 3.75ct vs 3ct (1H13)
  • 14 Aug 14 (AM) : SingTel (Q115) – EPS 5.24ct vs 6.35ct (Q114)

 

 

STI = 3330.22 (-11.24)

Stock

Period

EPS cts

DPS cts

Mkt

Yield

PE

Div Breakdown

Hong Leong Fin

FY13 (Dec)

15.85

12.00

$2.730

4.396%

17.22

Interim 4ct ; Final 8ct

SGX

FY14 (Jun)

30

28

$7.300

3.836%

24.33

Q1, Q2, Q3 4ct ; Q4 4ct +12ct

SingPost

FY14 (Mar)

6.746

6.25

$1.720

3.634%

25.50

Q1, Q2, Q3 1.25ct ; Q4 2.5ct

SPH

FY13 (Aug)

27

22.0

$4.160

5.288%

15.41

Interim 7ct ; Final 8ct + Special 7ct

Note : SGX Added from May-14 ; Q4 Variable Div Depends on FY EPS


Aviation Services

Stock

Period

EPS cts

DPS cts

Mkt

Yield

PE

Div Breakdown

SATS

FY14 (Mar)

16.10

13.0

$3.090

4.207%

19.19

Interim 5ct ; Final 8ct

SIA Engineering

FY14 (Mar)

23.88

25.0

$4.570

5.470%

19.14

Interim 7ct ; Final 13ct + Special 5ct

ST Engineering

FY13 (Dec)

18.73

15.0

$3.690

4.065%

19.70

Interim 3ct ; Final 4ct + Special 8ct


Note : SIAEC Special Div is Observed to be Non-Recurring (Depends on Excess Cash)



Transport

Stock

Period

EPS cts

DPS cts

Mkt

Yield

PE

Div Breakdown

SBSTransit

FY13 (Dec)

3.62

1.80

$1.700

1.059%

46.96

Interim 0.9ct ; Final 0.9ct

ComfortDelGro

FY13 (Dec)

12.43

7.00

$2.500

2.800%

20.11

Interim 3ct ; Final 4ct

SMRT

FY14 (Mar)

4.10

2.20

$1.545

1.424%

37.68

Interim 1.0ct ; Final 1.2ct




TELCO

Stock

Period

EPS cts

DPS cts

Mkt

Yield

PE

Div Breakdown

SingTel

FY14 (Mar)

22.92

16.8

$3.910

4.297%

17.06

Interim 6.8ct ; Final 10ct

M1

FY13 (Dec)

17.4

21

$3.800

5.526%

21.84

Interim 6.8ct ; Final 7.1ct + Special 7.1ct

StarHub

FY13 (Dec)

21.50

20

$4.130

4.843%

19.21

Q1 5ct ; Q2 5ct ; Q3 5ct ; Q4 5ct




Infrastructure

Stock

Period

DPS cts

Mkt

Yield

NAV

Div Breakdown

SPAus

2H – Mar14

A4.18 (Gross)

$1.645

5.942%

A$0.90

1H14 A4.18ct ; 2H14 A4.18ct

* SPAus DPU in A$. Yield is Calculated Using Latest Exchange Rate (1.1692) fm Yahoo

NOTES :

  • Mkt Price is as on 28-Aug-14
  • ComfortDelgro : Q214 (Jun) –3.5ct
  • ST Engg : 1H14 (Jun) – 4ct
  • SBSTransit : Q214 (Jun) – 1.25ct
  • HLFin : 1H14 (Jun) – 4ct
  • SGX : Q414 (Jun14) – 4ct+ 12ct ; Q314 (Mar14) – 4ct ; Q214 (Dec13) – 4ct ; Q114 (Sep13) – 4ct
  • M1 : 1H14 (Jun) – Interim 7ct
  • SPAus : FY15 Guidance = A8.36ct Gross
  • SPAus : 2H14 (Mar14) – A4.18ct = A1.393ct (Franked) + A2.379ct (Interest – Subject to 10% Tax) + A0.408ct (Capital Returns) ; 1H14 (Sep13) – A4.18ct = A1.393ct (Franked) + A2.396ct (Interest – Subject to 10% Tax) + A0.391ct (Capital Returns)
  • SingTel : 2H14 (Mar14) – Interim 10ct ; 1H14 (Sep13) – Interim 6.8ct
  • StarHub : Q114 (Mar) – 5ct
  • SIAEC : Q414 (Mar14) – Final 13ct + Special 5ct ; Q214 (Sep13) – Interim 7ct
  • SMRT : Q414 (Mar14) – Interim 1.2ct ; Q214 (Sep13) – Interim 1ct
  • ST Engg : Dividend Payout Reduced from 90% to 80% for FY13 & Will Be Further Reduced to 75% from FY14
  • StarHub : FY14 Div Guidance – 5ct/Q
  • SingPost : Q314 (Dec13) – 1.25ct ; Q214 (Sep13) – 1.25ct ; Q114 (Jun13) – 1.25ct
  • SATSvcs : 1H14 (Sep13) – Interim 5ct
  • SPH : 2H13 (Aug) – Final 8ct + Special 7ct ; 1H13 (Feb) – Interim 7ct
  • SingTel : Div Policy – 60% to 75% of Underlying Net Profit
Bookmark and Share

ComfortDelgro – DBSV

15 August 2014
Comments Off

Right on schedule

  • 2Q14 in line; 1H forms 49.5% of our FY14F estimates, DPS of 3.75 Scts declared
  • Expect stable growth to continue, aided by recent fare increases, ridership and acquisitions
  • Share price trading at 1.5 std deviation above historical average
  • Maintain HOLD, TP revised marginally to S$2.71

Highlights

2Q14 within expectations. 2Q14 net profit of S$75.7m was 9.9% up from a year ago, as revenue grew by 11.9% y-o-y to S$1.02bn, contributed by all business segments, notably buses (+S$80.3m) and taxis (+S$20m). Operating profit rose by 6.5% y-o-y to S$119.9m, a tad slower than topline due to higher operating expenses (+12.6% y-o-y) arising largely from higher staff costs (+17.3%), fuel & electricity (+25.6%) and premises costs (+26.9%). Operating margins slipped slightly to 11.8%, from 12.4% a year ago. An interim dividend of 3.75 Scts was declared (1H13: 3 Scts), equating to 57.6% payout ratio.

Our View

Stable growth to continue, though y-o-y rate in 2H could be a tad lower. Despite continued cost challenges, we expect management to continue delivering stable growth into 2H14 and FY15/16F, helped by recent fare increases and higher ridership in Singapore, and both organic and inorganic growth overseas. However, we currently expect 2H14 to see a slower y-o-y growth rate compared to that seen in 1H14 (+9.8%), due to a higher base in 2H13 (post-Metroline West acquisition in mid-2013) and lower contribution from Australia due to Sydney Metropolitan Bus Region 4 re-contract in August.

Acquisitions to continue; Blue Mountains Bus soon in the bag. CD recently announced that it had entered into an agreement to acquire Sydney-based Blue Mountain Bus Company for A$26.5m (S$30.8m), subject to regulatory approvals and due diligence. We were not surprised by this bite-sized purchase and view it positively as it will supplement the Group’s overall growth. We expect management to continue on this track to leverage on its strong balance sheet.

Recommendation

Maintain HOLD, TP S$2.71. We like CD for its diverse business and geographical exposure, and steady growth profile coupled with its opportunistic bite-sized acquisitions in areas which are familiar to management. However, we maintain our HOLD recommendation, given limited upside and with its valuation at 19x FY15F PE, which is c.1.5 std deviation above its historical mean. Our forecast is tweaked up marginally by 1.3% on lower minority interests, resulting in a revised TP of S$2.71. We will turn into buyers at c.S$2.40, which implies >10% upside to our TP.

Bookmark and Share
Next Page »