While CDG’s public transport business was stable during the quarter, fuel costs are expected to increase on the back of rising oil prices. “Management said an indexation mechanism in the contracts will mitigate recent energy cost rises with forward hedges (up to 50% of volumes) in place to manage short-term timing differences,” says Ong.
Maybank Securities’ Eric Ong has downgraded ComfortDelGro to “hold” from “buy” previously after the group’s 1QFY2026 ended March 31 results came in below consensus’ expectations. The group’s patmi for the quarter fell by 16.1% y-o-y to $40.5 million, meeting only 17.4% of the consensus’ full-year estimates.
Ong, who has lowered his target price to $1.50 from $1.70 previously, has also cut his FY2026 - FY2028 earnings by 17% to factor in higher fuel costs for CDG’s public transport segment and margin compression in the taxi and private hire segment amid industry competition.
