Challenged by Grab/Uber in the taxi segment, ComforDelgro (CDG) taxi's segment has been hit hard and its taxi division has been suffering with declining profits. While others will focus heavily on CDG's Taxi business, it is worth noting CDG is quite diversified across many sectors.
So lets analysis CDG's sector by sector and try to find the valuation of the group on a whole based on its projected profits.
Public Transport Segment
Almost everyone is familiar with this segment which involves SBS Transit running bus and train operations. Due to the industry overhaul by LTA, SBS transit is moving towards an asset light structure, becoming an operator with no ownership of the assets. The profit segment is relatively stable and one can reasonably expect this segment to generate s$170 million per year.
Profit: s$170 million
Taxi Segment
This is the most contentious segment right now. While the taxi segment has ......
