Brokers' take

ComfortDelGro | Buy Target price: S$2.86 Aug 14 close: S$2.30 Citi Research, Aug 14

Q2 17 Patmi (profit after tax and minority interests) of S$79 million (-7 per cent year on year, -4 per cent quarter on quarter). H1 17 at 48 per cent/51 per cent of Citi/consensus FY17E estimates (2016: 45 per cent, 2015: 48 per cent), in-line with recently lowered estimates. Lower profits on poorer taxi Ebit (earnings before interest and taxes) of S$39 million (-17 per cent yoy, +14 per cent qoq), lower automotive engineering Ebit of S$11 million (-16 per cent yoy, +14 per cent qoq), and unfavourable net FX movements of -S$1 million (Q2 16: -S$2 million, Q1 17: -S$2 million), mitigated by profit contribution after full acquisition of ComforDelgro Cabcharge Australia (completed Feb 15). Taxi challenges aside, it is well positioned to benefit from Singapore's transport modal shift from cars/taxis to trains/bus. It has stepped up efforts to mitigate taxi's challenges.

Jadason Enterprises Limited | Add Target price: S$0.17 Aug 14 close: S$0.109 CIMB, Aug 14