3 March 2017 Asia Pacific/Singapore Equity Research Leasing & Logistics ComfortDelGro Corporation Ltd (CMDG.SI / CD SP) Rating OUTPERFORM Price (02-Mar-17, S$) 2.50 RESEARCH BULLETIN Target price (S$) 3.35 Upside/downside (%) 34.0 Mkt cap (S$/US$ mn) 5,393 / 3,818 Quick Take: SBS emerged as the lowest Enterprise value (S$ mn) 5,014 Number of shares (mn) 2,157 bidder for Seletar bus package Free float (%) 90.0 52-wk price range (S$) 3.01-2.37 ■ SBS Transit lowest bidder amongst nine shortlisted for Seletar bus ADTO-6M (US$ mn) 16.3 package. The LTA announced that it has received nine tenders for the Target price is for 12 months. Seletar bus package, with SBS Transit emerging as the lowest tenderer with Research Analysts a five-year price of S$480.3 mn (figure 1). As a recap, the Seletar bus Louis Chua, CFA 65 6212 5721 package is the third and final bus package put up for competitive tender in
[email protected] June 2016, which comprises 24 existing and two new services operated Christopher Siow from Ang Mo Kio, Yio Chu Kang and Yishun Bus Interchanges (details in 65 6212 3062 prior report). The tender is expected to be awarded by the end of March.
[email protected] ■ Contract price implies S$3.7 mn per service per annum. Based on the five-year price of S$480.3 mn and a total of 26 services, this works out to S$3.7 mn per service per annum, lower than that of the first two public tenders (Figure 4) and our current assumption of S$4.1 mn for SBS's existing negotiated packages.