Assuming 6% ebit margin and a corporate tax rate of 30%, Maybank analyst Eric Ong estimates the incremental profit contribution at about $5.9 million per annum on a full year basis.
Analysts at Maybank Securities, DBS Group Research and CGS International (CGSI) are positive on ComfortDelGro (SGX:C52
) (CDG) after the company’s Australian subsidiary ComfortDelGro Corp Australia (CDCA) won three bus franchises within the Victorian Department of Transport and Planning’s Metropolitan Zero Emission Bus (ZEB) Franchises tender process.
The three franchises are worth around A$1.6 billion ($1.4 billion) over 10 years. Under the new franchises, which comprise 250 public bus and school routes serviced by over 360 buses, buses and depots are funded as part of the contracts and will transition to full ZEB operations prior to the end of the contract term. The term will commence on July 1, 2025.
