Brokers' take

Land Transport Sector | Neutral OCBC Research, May 23

Q1 results of ComfortDelGro Corp (CDG) and SMRT Corp came in within our expectations. We believe the focus for Singapore land transport sector should still be on catalysts driven by regulatory changes. For the bus industry, we think transition to the new bus government contracting model is still likely on track to meet the H216 target. With 75 per cent market share, CDG will be key beneficiary.

For the taxi industry, playing field was levelled slightly with the introduction of new policies to regulate private hire car drivers and vehicles. Nonetheless, we still see disparity relating to applicable standards and pricing structures between traditional taxi businesses and private hire car services, and this may lead to further loosening of strict taxi standards.