Comfort Delgro & SBS Transit – Annual Report 2012 and share prices

While SMRT’s share prices had been declining, Comfort Delgro’s share price was rising. For financial year 2012, started 1 January 2012 and ended 31 December 2012, share price rose 24.4% from $1.43 to $1.78. As of 5 April 2013, its share was last traded at $1.925 (34.6% jump from $1.43).

The following table shows performance of Comfort Delgro based on FY2012 annual report.

FY2012 FY2011
Net Profit $248.9 m $235.6 m
EPS  11.9 cents 11.3 cents
Dividends (Total)  6.4 cents 6.0 cents
Share price @ 31 Dec $1.78 $1.43
Dividend Yield 3.59% 4.19%

Net profit increased by 5.6%. Dividend yield based on financial year-end share price was 3.59%. This was good yield with capital appreciation of its share price.

Comfort Delgro operates in 7 countries with Singapore’s operation the biggest.

SBS Transit that operates in Singapore is a subsidiary of Comfort Delgro. The Singapore transport landscape is a challenging one. SBS Transit’s net profit declined nearly 50% to $18.5 million for FY2012, even total revenue rose 5.5% to $792.2 million. Return on Equity declined from 11.3% to 5.5%. Conclusion is that without any fare increase, SBS Transit will be underperforming.

The good news for Comfort Delgro is that it has operations in other countries besides Singapore. The combined results of all 7 countries still show growth in net profit for the year.

Copyright © 2013, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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