ComfortDelgro – BT
ComfortDelGro Q2 profit edges up
TRANSPORT group ComfortDelGro Corporation registered a marginal 1.6 per cent increase in year-on-year net profit to $58.2 million for the second quarter ended June 30.
Revenue rose to $789.3 million, from $758.3 million a year earlier, amid growth across various business segments.
While actual revenue grew by $46.2 million, negative foreign currency translation as a result of the weaker British pound and Chinese yuan reduced this to $31 million. Group operating expenses came in at $690 million, up 3.9 per cent year on year.
Earnings per share climbed to 2.79 cents, from 2.74 cents per share in Q2 2009. For the first half, net profit was 2.5 per cent higher year-on-year at $112.5 million, while revenue was 5.5 per cent higher at $1.55 billion.
Revenue from the bus business rose 5 per cent to $399.8 million in the latest Q2, while revenue from the taxi business was 3.5 per cent higher at $238.7 million.
Revenue from the rail business at SBS Transit jumped 14.3 per cent to $30 million, as average daily ridership for the North East Line and the two LRT systems rose 14.4 per cent and 9.6 per cent respectively.
For Q2, revenue from overseas made up 43.1 per cent of total, versus 44.3 per cent a year back, as a result of the weaker British pound, though this was offset by a stronger Australian dollar. Outside Singapore, Comfort operates in six countries including China, the UK, Ireland and Australia.
On future outlook, Comfort said revenue from its Singapore bus business will be boosted by expected ridership growth, while revenue from its Australia bus operations will improve with increased services, but revenue from its UK bus business is expected to be affected by exchange rates.
Revenue from the rail business is also expected to benefit from ridership growth, while the taxi business in Singapore should register higher revenue with more cashless transactions and new taxis.
‘As global economic conditions remain uncertain, the group will continue to focus on the demand patterns of its customers, control expenses even though fuel and electricity costs will continue to pose challenges, and remain vigilant while seeking opportunities for growth,’ Comfort said.
At June 30, the group had cash and short-term deposits of $508.6 million and liquid investments of $35.1 million, for a total of $543.7 million. After offsetting borrowings of $580.8 million, it had a net debt position of $37.1 million and a net gearing ratio of 1.6 per cent.
Comfort has declared an interim dividend of 2.7 cents, to be paid on Sept 7.
Comfort’s shares closed one cent higher yesterday at $1.55.
ComfortDelgro – BT
ComfortDelGro Q2 profit edges up
TRANSPORT group ComfortDelGro Corporation registered a marginal 1.6 per cent increase in year-on-year net profit to $58.2 million for the second quarter ended June 30.
Revenue rose to $789.3 million, from $758.3 million a year earlier, amid growth across various business segments.
While actual revenue grew by $46.2 million, negative foreign currency translation as a result of the weaker British pound and Chinese yuan reduced this to $31 million. Group operating expenses came in at $690 million, up 3.9 per cent year on year.
Earnings per share climbed to 2.79 cents, from 2.74 cents per share in Q2 2009. For the first half, net profit was 2.5 per cent higher year-on-year at $112.5 million, while revenue was 5.5 per cent higher at $1.55 billion.
Revenue from the bus business rose 5 per cent to $399.8 million in the latest Q2, while revenue from the taxi business was 3.5 per cent higher at $238.7 million.
Revenue from the rail business at SBS Transit jumped 14.3 per cent to $30 million, as average daily ridership for the North East Line and the two LRT systems rose 14.4 per cent and 9.6 per cent respectively.
For Q2, revenue from overseas made up 43.1 per cent of total, versus 44.3 per cent a year back, as a result of the weaker British pound, though this was offset by a stronger Australian dollar. Outside Singapore, Comfort operates in six countries including China, the UK, Ireland and Australia.
On future outlook, Comfort said revenue from its Singapore bus business will be boosted by expected ridership growth, while revenue from its Australia bus operations will improve with increased services, but revenue from its UK bus business is expected to be affected by exchange rates.
Revenue from the rail business is also expected to benefit from ridership growth, while the taxi business in Singapore should register higher revenue with more cashless transactions and new taxis.
‘As global economic conditions remain uncertain, the group will continue to focus on the demand patterns of its customers, control expenses even though fuel and electricity costs will continue to pose challenges, and remain vigilant while seeking opportunities for growth,’ Comfort said.
At June 30, the group had cash and short-term deposits of $508.6 million and liquid investments of $35.1 million, for a total of $543.7 million. After offsetting borrowings of $580.8 million, it had a net debt position of $37.1 million and a net gearing ratio of 1.6 per cent.
Comfort has declared an interim dividend of 2.7 cents, to be paid on Sept 7.
Comfort’s shares closed one cent higher yesterday at $1.55.
SingPost – Lim and Tan
Makes Sense
• The company made its first-ever share buy-back yesterday, buying 500,000 shares at $1.13.
• The mandate allows it to buy up to 192.775 mln shares, or 10% of existing issued capital.
• Note that Sing Post raised $200 mln via the issuance of the 3.5% 10-year notes in March this year.
• Based on 6.25 cents dividend for ye Mar ’10 (as for the preceding 3 fiscal years), the yield at $1.13 is 5.5%.
• Given there is no immediate need for the new funds raised in March, buying back its own shares does make eminent sense.
• The stock, for which we have maintained a BUY for some time, has done reasonably well with little fanfare.
SingPost – Lim and Tan
Makes Sense
• The company made its first-ever share buy-back yesterday, buying 500,000 shares at $1.13.
• The mandate allows it to buy up to 192.775 mln shares, or 10% of existing issued capital.
• Note that Sing Post raised $200 mln via the issuance of the 3.5% 10-year notes in March this year.
• Based on 6.25 cents dividend for ye Mar ’10 (as for the preceding 3 fiscal years), the yield at $1.13 is 5.5%.
• Given there is no immediate need for the new funds raised in March, buying back its own shares does make eminent sense.
• The stock, for which we have maintained a BUY for some time, has done reasonably well with little fanfare.
SingTel – AmFraser
Rough patch for Associates, forecasts and fair value cut
• SingTel’s 1QFY11 net profit came in flat YoY at S$943mil. Earnings improved for Singapore and Australia operations, but group results were dragged down by lower contribution from associates.
• Associate contribution fell 16% YoY to $541mil, making up 41% of EBIT (versus 49% in 1QFY10). This was largely due to a hefty 23% fall in contribution from Bharti Airtel in India. Bharti was hit by financing costs for its recent acquisition of Zain Africa. As a result, Bharti’s contribution to associate fell to 38% from 42% in 1QFY10.
• Contribution from SingTel’s other significant associate, Telkomsel in Indonesia, also fell at 10% YoY. This was despite the Indonesian Rupiah appreciating 9% YoY against the Singapore dollar. Mainly, expenses outpaced with Telkomsel’s network upgrades and expansion. Telkomsel made up 40% of Associate in 1QFY11 (38% in 1QFY10).
• Managment is moderating for a margin decline at Telkomsel, and Bharti’s earnings will continue to be diluted by acquisition financing costs for Zain Africa BV and investment in 3G spectrum.
• On lower associate performance, we cut full-year forecasts by 3% in FY11F to 25.0 cents EPS, and by 2% in FY12F to 26.0 cents EPS. We also update fair value to 8% lower at S$2.82, but maintain our HOLD rating for another 6% price downside.
• Singapore operations enjoyed healthy revenue growth of 10% to S$1.52bil largely due to mobile and IT/engineering segments. Key driver for mobile was a S$5 surge in postpaid ARPU to $89 as data usage pushed non-voice revenue contribution to 37% (from 32% in 1QFY10 and 36% in 4QFY10).
• However the upfront investment in smartphone proliferation squeezed Singapore EBITDA margins to 39% from 42% in 1QFY10. The boost for IT/engineering revenue is largely from fibre rollout for NGNBN.
• Optus in Australia was the star – in addition to robust net profit growth of 22% to A$170mil, contribution to SingTel was further boosted by a 9% YoY appreciation in A$/S$ rate. Postpaid subscribers continued to grow at a healthy 16% YoY. Optus accounted for 25% of group EBIT.
• Management continues to guide for mid-single digit core revenue growth for FY11F, while EBITDA margin for Singapore will be squeezed to 35% from higher pay TV content costs as Barclays Premier League commences on mio TV platform.