Core Viewpoint - OCBC maintains a "buy" rating for ComfortDelGro Corp. but slightly lowers its fair value estimate from SGD 1.75 to SGD 1.74 due to the company's performance in the first nine months of 2025 [1][3] Financial Performance - ComfortDelGro's net profit for 9M25 increased by 15.4% year-on-year to SGD 176.4 million, while revenue grew by 13.9% to SGD 3.8 billion [1] - The reported performance includes a one-time net gain from the sale of an Australian bus company, which, when excluded, shows core net profit slightly below OCBC's expectations [1] - The main drag on performance was the profit margin pressure in the "Taxi and Private Hire" segment [1] Business Segment Analysis - In the "Taxi and Private Hire" segment, revenue surged by 53.4% due to the acquisition of the UK taxi company Addison Lee, but core operating profit margin fell significantly from 19.2% to 13.4% [1] - The decline in margin is attributed to Addison Lee's lower profitability [1] - The "Public Transport" segment showed stable performance with a revenue increase of 4.5% to SGD 2.4 billion and a core operating profit growth of 20.5%, driven by new contracts and fare increases [2] Future Outlook - ComfortDelGro's failure to secure the Tampines Bus Contract, which was awarded to Go-Ahead Group, is expected to negatively impact the company's performance in the second half of 2026 [2] - However, the fare increase effective from December 27, 2025, in Singapore's public transport system is anticipated to partially offset this loss [2]

Core Insights - Morgan Stanley reports that China Overseas Development (00688) saw a 17% year-on-year decline in core net profit to 8.8 billion RMB, which is 4% higher than the bank's estimate, primarily due to a 4% decrease in revenue and a 25% drop in EBIT [1] Financial Performance - The company's dividend per share decreased by 17% to 0.25 HKD, while the payout ratio remained unchanged [1] - Gross margin stood at 17.4%, down 4.7 percentage points year-on-year, but improved by 3.6 percentage points compared to the previous half [1] - Core net profit margin fell by 2.8 percentage points to 10.2%, although it improved by 4.1 percentage points on a half-year basis [1] Balance Sheet and Debt - The balance sheet remains healthy, with the net debt ratio slightly decreasing from 29% to 28% [1] - The cash coverage ratio for short-term debt is 4.9 times, projected to be 4.3 times by the end of 2024, indicating strong performance, one of the best in the industry [1] Property Valuation - China Overseas' investment property valuation appears high, with a book value of 210 billion RMB against an annual investment property income of 7 billion RMB, resulting in an implied capitalization rate of 3.3%, which is still considered low [1] - Market consensus predicts a low single-digit percentage decline in net profit for the fiscal year 2025, with potential further downward adjustments to earnings forecasts [1]