Equity Long-Short

Mo Aziz

Equity Bottom-Up

<ul>
<li>Compounding returns by earning Singapore-Dollar fares on a Malaysian cost base, while policy gaps force Governments to rely on private operators</li>
<li>Strong growth pipeline, the RTS Link will spur route restructuring and redeployment of capacity to higher-yielding routes. We see the RTS Link as a net positive for Hi Mobility </li>
<li>BUY with TP of RM3.10 based on 1-year forward PE of 19.5x, a 10% premium to SBS Transit's mean PE to factor in higher earnings growth and superior ROEs  </li>
</ul>


Compounding returns by earning Singapore-Dollar fares on a Malaysian cost base, while policy gaps force Governments to rely on private operators
Strong growth pipeline, the RTS Link will spur route restructuring and redeployment of capacity to higher-yielding routes. We see the RTS Link as a net positive for Hi Mobility 
BUY with TP of RM3.10 based on 1-year forward PE of 19.5x, a 10% premium to SBS Transit's mean PE to factor in higher earnings growth and superior ROEs  


HI Mobility (HI MK): Singapore Fares, Malaysian Costs, and a Long Runway Ahead

Vriddhi Consulting

Punit Khanna

Independent Insight Provider

<ul>
<li>55% market share in Singapore bus market. SBS runs 3 train lines.</li>
<li>The company has only one customer which is LTA and does not have much pricing power</li>
<li>The company is asset light and has lots of cash on its books.</li>
</ul>
<div class="content-highlight">
<h2>Raising Money for Persons with Disabilities in Singapore</h2>
<p><em><strong>For your kind consideration</strong></em></p>
<p><em>This report has been prepared by Vriddhi Consulting, founded by Punit and Debjani Khanna. A portion of the research was contributed by Shubham Khanna, an individual on the autism spectrum. We are grateful to Smartkarma for providing a platform to share this research and amplify its impact.</em></p>
<p><em>All proceeds from the publication of this report will be donated to support people with disabilities in Singapore. If you find this report valuable, we invite you to support our campaign, “Raising Money for Persons with Disabilities in Singapore.” Every contribution directly benefits the Goh Chok Tong Enable Fund and qualifies for a 250% tax deduction for Singapore tax residents.</em></p>
<p>To contribute, please visit this <a href="https://www.giving.sg/donate/campaign/raising-money-for-person-with-disabilities-empowering-visions-shaping-future" target="_blank" rel="noopener">URL</a>.</p>
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55% market share in Singapore bus market. SBS runs 3 train lines.
The company has only one customer which is LTA and does not have much pricing power
The company is asset light and has lots of cash on its books.


Raising Money for Persons with Disabilities in Singapore
For your kind consideration
This report has been prepared by Vriddhi Consulting, founded by Punit and Debjani Khanna. A portion of the research was contributed by Shubham Khanna, an individual on the autism spectrum. We are grateful to Smartkarma for providing a platform to share this research and amplify its impact.
All proceeds from the publication of this report will be donated to support people with disabilities in Singapore. If you find this report valuable, we invite you to support our campaign, “Raising Money for Persons with Disabilities in Singapore.” Every contribution directly benefits the Goh Chok Tong Enable Fund and qualifies for a 250% tax deduction for Singapore tax residents.
To contribute, please visit this URL.


SBS Transit: Stable and a Slow Growth Business but Expensive at Current Prices

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

<ul>
<li>Public transport and taxi segments in Singapore provide much-needed stability for the group, not much downside surprise is expected. Now 54% of its revenue is generated overseas. </li>
<li>
<a href="https://www.smartkarma.com/entities/comfortdelgro-corp-ltd" target="_blank" data-smartkarma-citation="entities:497:1" rel="noopener">Comfortdelgro Corp (CD SP)</a> subsidiary, <a href="https://www.smartkarma.com/entities/vicom-ltd" target="_blank" data-smartkarma-citation="entities:19020:1" rel="noopener">Vicom Ltd (VCM SP)</a> is in charge of the OBU upgrade in Singapore, providing some high-margin incremental operating profit.</li>
<li>It trades at 14x PE, and its share price is almost at historical low, creating another reason to build positions on this.  </li>
</ul>


Public transport and taxi segments in Singapore provide much-needed stability for the group, not much downside surprise is expected. Now 54% of its revenue is generated overseas. 

Comfortdelgro Corp (CD SP) subsidiary, Vicom Ltd (VCM SP) is in charge of the OBU upgrade in Singapore, providing some high-margin incremental operating profit.
It trades at 14x PE, and its share price is almost at historical low, creating another reason to build positions on this.  


Comfortdelgro (CD): Growth Evident and Cheap

<ul>
<li>
<a href="https://www.smartkarma.com/entities/comfortdelgro-corp-ltd" target="_blank" data-smartkarma-citation="entities:497:1" rel="noopener">Comfortdelgro Corp (CD SP)</a> share price has underperformed its tourism related transport operator peers.</li>
<li>Key drivers are still strong, including the expected influx of Chinese tourists from visa-free travel arrangements.</li>
<li>Valuation is still compelling, and it is not too late to own it.</li>
</ul>



Comfortdelgro Corp (CD SP) share price has underperformed its tourism related transport operator peers.
Key drivers are still strong, including the expected influx of Chinese tourists from visa-free travel arrangements.
Valuation is still compelling, and it is not too late to own it.


Comfortdelgro (CD): March on Chinese Tourists

<ul>
<li>The share price has increased by around 20% since mid-last year.</li>
<li>A new revenue stream from the booking fee through the Zig app and calls that, albeit small, it was never possible to share upside with cabbies before. </li>
<li>Extension from 15 days to 30 days visa-free for Chinese tourists to come to Singapore on early 2024. </li>
</ul>


The share price has increased by around 20% since mid-last year.
A new revenue stream from the booking fee through the Zig app and calls that, albeit small, it was never possible to share upside with cabbies before. 
Extension from 15 days to 30 days visa-free for Chinese tourists to come to Singapore on early 2024. 


Singapore

SBS Transit is a leading multi-modal public transport operator in Singapore, providing extensive bus and rail services. Its offerings include various bus services, the North East MRT Line, Downtown MRT Line, and the Sengkang and Punggol Light Rail Transit systems. The company is headquartered in Singapore and was founded in 1973 as Singapore Bus Services.

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SBS Transit (SBUS SP)

HI Mobility (HI MK): Singapore Fares, Malaysian Costs, and a Long Runway Ahead

A rare transport story where policy gaps drive growth. HI Mobility earns Singapore-level fares on a Malaysian cost base, with cross-border...

Mo Aziz

SBS Transit: Stable and a Slow Growth Business but Expensive at Current Prices

SBS dominates Singapore's bus market with 55% share, operates 3 train lines, but lacks pricing power with only one customer (LTA). stock does not...

Punit Khanna

Comfortdelgro (CD): Growth Evident and Cheap

Comfortdelgro 54% revenue from overseas. Vicom Ltd's OBU upgrade offers high-margin profit, trading at 14x PE near historical low. Opportunity to...

Henry Soediarko

Comfortdelgro (CD): March on Chinese Tourists

Comfortdelgro Corp's share price lags behind tourism transport peers despite strong drivers like Chinese tourist influx and compelling valuation.

Henry Soediarko

Comfortdelgro (CD): The Chinese Is Back

Comfortdelgro enjoys new revenue stream that allows upside participation in the number of rides, and longer visa-free stay for Chinese tourists in...

Henry Soediarko

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

HI Mobility (HI MK): Singapore Fares, Malaysian Costs, and a Long Runway Ahead

A rare transport story where policy gaps drive growth. HI Mobility earns Singapore-level fares on a Malaysian cost base, with cross-border...

Mo Aziz

SBS Transit: Stable and a Slow Growth Business but Expensive at Current Prices

​SBS dominates Singapore's bus market with 55% share, operates 3 train lines, but lacks pricing power with only one customer (LTA). stock does not...

Punit Khanna

Comfortdelgro (CD): Growth Evident and Cheap

​Comfortdelgro 54% revenue from overseas. Vicom Ltd's OBU upgrade offers high-margin profit, trading at 14x PE near historical low. Opportunity to...

Henry Soediarko

Comfortdelgro (CD): March on Chinese Tourists

​Comfortdelgro Corp's share price lags behind tourism transport peers despite strong drivers like Chinese tourist influx and compelling valuation.

Henry Soediarko

Comfortdelgro (CD): The Chinese Is Back

Comfortdelgro enjoys new revenue stream that allows upside participation in the number of rides, and longer visa-free stay for Chinese tourists in...

Henry Soediarko

SBS dominates Singapore's bus market with 55% share, operates 3 train lines, but lacks pricing power with only one customer (LTA). stock does not...

Comfortdelgro 54% revenue from overseas. Vicom Ltd's OBU upgrade offers high-margin profit, trading at 14x PE near historical low. Opportunity to...

Comfortdelgro Corp's share price lags behind tourism transport peers despite strong drivers like Chinese tourist influx and compelling valuation.