Highlights

SGX Stocks and Warrants

Author: kimeng   |   Latest post: Tue, 17 Oct 2017, 08:53 AM

 

ComfortDelGro: SBS Transit Wins Third Bus Package Tender

Author:   |    Publish date:


Singapore’s LTA announced yesterday that ComfortDelGro’s (CDG) 75%-owned subsidiary, SBS Transit (SBST), has been awarded the Seletar Bus package, which is the third package that was put up for tender. The five-year contract’s estimated total fee is S$480.3m, and can be extended by another two years depending on performance.

SBST will progressively from 1Q18 operate 26 bus services, of which it is already currently operating 13.

Recall that the tender for this package was launched on 7 Jun 2016 and attracted nine bids when it closed on 27 Oct 2016, and SBST’s bid came in at the lowest. As the tender evaluation looked at both quality and price factors, with greater weightage given to the former, SBST was awarded as it had the highest combined total score.

Therefore, we expect this contract win to positively impact CDG from FY18 onwards, and reiterate BUY on CDG with an unchanged FV of S$2.95.

Source: OCBC Research - 20 Apr 2017

Share this

Related Stocks

Chart Stock Name Last Change Volume 
ComfortDelGro 1.99 -0.03 (1.49%) 15,508,700 

  Be the first to like this.
 


 

168  197  232  430 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 CLTW 0.125-0.004 
 CLSW 0.089-0.001 
 CLDW 0.138-0.003 
 Alliance Mineral 0.385-0.015 
 CLEW 0.043-0.001 
 Rowsley 0.1380.00 
 China Med Intl 0.0010.00 
 CDWW 0.012-0.001 
 Ziwo^ 0.02+0.002 
 SingTel 3.74+0.02 
Partners & Brokers