Covid-19 has impacted transport activity significantly in Singapore and overseas. In Singapore, transport activity slowed down significantly in April and May, but has been recovering in recent times.

ComfortDelgro also benefitted from the government’s Jobs Support Scheme, and for the Singapore public bus operations, CD is not exposed to fare revenue, as the group operates under the bus contracting model. CD’s net gearing has remained low, and is in a position to undertake acquisitions when the opportunity arises.

As mentioned in our earlier reports, Covid-19 has had a significant impact to the taxi and rail business, though this should recover over the longer term. BUY.

Source: OCBC Research - 24 Nov 2020