ComfortDelGro ENGIE has opened its 1,000th charge point in Singapore. The latest charge point, unveiled by Speaker of Parliament Seah Kian Peng on Nov 16, is located at Blk 333 Serangoon Ave 3, near Serangoon Central and Nex.

 

The latest launch coincides with ComfortDelGro C52 ENGIE&rsquo s third anniversary and adds to the provider of electric vehicle (EV) charging solutions&rsquo regional charging network alliance in Malaysia and Thailand. ComfortDelGro ENGIE aims to have 8,000 charging points across all three countries by 2030.

 

In its release, the company says it will launch a new mobile app this year, allowing users to plan road trips. The app will include several features such as calculating the necessary charging stops based on the state-of-charge by vehicle type and enabling users with full access to charging stations in Malaysia.

 

" As we celebrate our third anniversary, we' re not just looking back at our achievements, but forward to the future of sustainable mobility,&rdquo says Freddie Chew, general manager of ComfortDelGro ENGIE. &ldquo Reaching our 1,000th charge point in Singapore is a testament to our rapid growth and unwavering commitment to a greener future, while our expanding cross-border network alliance with like-minded partners further cements our position as a leader in EV charging solutions offering greater value to our customers for their charging needs, anywhere and everywhere."

The purchase of UK&rsquo s Addison Lee marks a shift towards an asset-heavier business model, says analyst

 

MAYBANK Securities has downgraded its call on ComfortDelGro to a contrarian &ldquo hold&rdquo , with a lower price target of S$1.60, from S$1.65 previously.

 

This comes even after the land transport operator reported a positive set of third-quarter results, which the brokerage considered in line with expectations. 

 

In a report on Friday (Nov 15), Maybank analyst Eric Ong said he had &ldquo some reservations&rdquo on the group&rsquo s recent acquisition of a 97 per cent interest in Addison Lee, a premium private hire, courier and black taxi provider in the UK.

 

While he acknowledged that the transaction &ldquo may be accretive&rdquo to the group, he noted a challenging operating and regulatory landscape in the UK.

 

In his view, the acquisition also marks ComfortDelGro&rsquo s shift towards an asset-heavier business model, coupled with Addison Lee&rsquo s &ldquo relatively low return-on-equity and growth prospects&rdquo .

 

Ong noted the competitive London taxi industry and Addison Lee&rsquo s &ldquo drivers&rsquo worker status issue&rdquo , in a reference to the company&rsquo s ongoing tribunal case over whether its drivers should be classified as workers or self-employed contractors.

 

&ldquo Additionally, we think the group is likely to incur more capex on the renewal/replacement of taxi vehicles with its larger fleet now, which could adversely impact its free cash flow,&rdquo he said. 

 

To recap, more than 700 Addison Lee drivers are seeking to be legally recognised as workers. The hearing began on Oct 28, and the drivers&rsquo successful claim would entitle them to back-dated compensation, including for holiday pay and minimum wage.

 

Citing law firm Leigh Day, which is involved in the case, the Financial Times on Sep 14 reported that Addison Lee was potentially facing more than £ 10 million (S$17 million) in damages.

 

RHB and CGS-CIMB are nonetheless positive regarding ComfortDelGro&rsquo s acquisition of the UK company, but suggested that it could move the group&rsquo s balance sheet from a net cash to net debt position.

 

Reiterating its &ldquo buy&rdquo call on the stock with an unchanged S$1.70 price target on Friday, RHB believes the group&rsquo s earnings growth momentum can be sustained amid a continued improvement in UK public transport margins, and contributions from the group&rsquo s Australian bus tender wins.

 

Analyst Shekhar Jaiswal said he was &ldquo fairly confident&rdquo of the company being able to sustain an estimated dividend payout ratio of about 75 per cent for the current financial year up until FY2026.

 

He also expects acquisitions, including that of Addison Lee and an improving China taxi business, to contribute to ComfortDelGro&rsquo s taxi and private-hire vehicle business segment in 2025.

 

Separately, CGS-CIMB analyst Ong Khang Chuen said he estimated the Addison Lee acquisition to be accretive to ComfortDelGro&rsquo s FY2025 earnings per share by about 6 per cent.

 

Based on its Oct 23 report, the research house has an &ldquo add&rdquo call on the stock with a price target of S$1.70.