• Further forays in Australia amounting to A$134m.
• Move in line with management’s strategy to pursue inorganic growth opportunities.
• Expect 2Q18 results to still show a decline, albeit smaller; project FY19 to revert to growth.
• Maintain BUY, Target Price unchanged at S$2.59.

What’s New

Further acquisitions of A$134.45m Down Under.

ComfortDelGro, through its wholly-owned subsidiary, ComfortDelGro Corporation Australia Pty Ltd (CDC Australia), announced it is acquiring all the shares of FCL Holdings Pty Ltd (FCL) for a total consideration of A$110m (S$111.1m). In addition to that, CDC Australia has also entered into an agreement to acquire Terrey Hills Depot and Toormina Depot for A$15.45m (c.S$15.6m). Separately, it is also acquiring Coastal Liner Coaches for a consideration of A$9m (S$9.09m).

Source: DBS Research - 08 Aug 2018