With the recent release of ComfortDelgro 2nd Quarter financial results for 2017 on 11th August 2017, I saw a lot of brackets. Brackets, as you know, represents a decline in financial status as compared to the previous year’s results, and can have a negative or positive effect.
I would not say that this is their best performing quarter. In fact, many of their business segments have reported a decline in revenue except for their Public Transport and Driving Centre Services. EPS has decreased 6.85% from 3.94 cents to 3.67 cents QoQ but increased 2% from 7.34 cents to 7.49 cents YoY due to a stronger 1Q. Shareholders will be receiving an interim dividend payout of 4.35 cents as compared to 4.25 cents in 2016. At my entry price, this amounts to about a 1.86% yield.
Nevertheless, I stand strong on my view about ComfortDelgro’s financial position. Net cash position is still healthy currently at $229.5m with a gross gearing ratio of 12.5%. Despite challenging outlooks as mentioned in their financial report, I will continue to be a shareholder and await their full 2017 financial results. Should the share price tumble down further to a suitable entry price, I will be glad to increase my holdings with them.
Thanks for reading!
Miss Niao xoxo