ComfortDelGro Corporation is set to bid for an operation and maintenance contract for the Copenhagen metro system, according to a corrected report by UOB Kay Hian. The tender, expected to be called in June 2025, could significantly boost ComfortDelGro’s earnings if successful. The contract, which is anticipated to commence in September 2027, would mark ComfortDelGro’s third collaboration with French transport company RATP Dev.
The Copenhagen metro, currently operated by a joint venture of Italian companies, serves approximately 2 million passengers weekly across its four lines and 44 stations. The contract is valued at around €1.5 billion, with an estimated operating margin of 8%. ComfortDelGro’s potential stake in the venture is projected at 45%, which could result in an annual operating profit increase of €5 million to €6 million (S$7 million to S$8 million).
ComfortDelGro’s public transport segment is poised for growth, driven by increased rail ridership and ongoing UK bus contract renewals. The company’s taxi segment is also expected to see robust growth, bolstered by contributions from recent acquisitions, despite stiff competition from new ride-hailing services entering the market.
The company’s financial outlook remains strong, with a projected 2025 dividend yield of 5.9%. UOB Kay Hian maintains a “BUY” recommendation for ComfortDelGro, with a target share price of S$1.77, citing the company’s solid earnings growth and attractive entry point following a recent dip in share price.
