OREANDA-NEWS. The three stocks of the Road & Rail sector have a combined market capitalisation of S$9.1 billion, as categorised by the Global Industry Classification Standard (GICS®). The sub-sector comprises companies providing goods, passenger, rail and land transportation, including vehicle rental and taxi companies.

Among the three stocks, ComfortDelGro is also a STI constituent, making up 2.6% of the Index.

In the year thus far, the three Road & Rail stocks averaged a total return of 7.2%, bringing their three-year return to 37.7%. The three currently trade at price-earnings (P/E) and price-to-book (P/B) ratios of 27.0 and 2.4 respectively, and maintain an indicative dividend yield of 2.2%.

In comparison, the MSCI World Road & Rail Index generated year-to-date and three-year returns of negative 8.9% and 45.3% respectively. The Index has a combined market capitalisation of US$377.0 billion, and maintains a yield of 1.7%.

Recent Developments

ComfortDelGro Corporation

In the third quarter of FY2015, ComfortDelGro posted a 1.0% YoY increase in revenue, which resulted in a 5.4% jump in profit from S$80.8 million in Q3 2014 to S$85.2 million in Q3 2015. Basic EPS rose 5.0%, from 3.78 cents in 2014 to 3.97 cents in 2015. 

On 19 Nov 2015, the company announced that half its taxi booking jobs have now been conducted through its mobile application, reaching a milestone of 30 million bookings via its app.

SMRT Corporation

In the second quarter of FY2015/16, SMRT Corporation posted a 4.7% YoY increase in revenue, which resulted in a 1.9% jump in profit from S$25.3 million in Q2 2014 to S$25.7 million in Q2 2015. Basic EPS rose 1.8%, from 1.66 cents in 2014 to 1.69 cents in 2015. 

On 12 Nov 2015, SMRT announced the opening of a new S$5 million Maintenance Operations Centre, which aims to improve its response to rail incidents. A 30% improvement in response time is expected once the facility becomes fully operational in 2017.

SBS Transit

In the third quarter of FY2015, SBS Transit posted a 5.4% YoY increase in revenue and 5.6% increase in operating costs, which resulted in a 5.0% decline in profit from S$5.7 million in Q3 2014 to S$5.5 million in Q3 2015. Basic EPS dipped 4.8% from 1.86 cents in 2014 to 1.77 cents in 2015. 

The table below details the three stocks, and is sorted according to market value. Click on each stock to visit its profile page on SGX StockFacts.

Name SGX Code Market Cap in S$bln Total Return YTD % Total Return: 3 Yrs % Dvd Ind Yld % GICS® Sub Industry Name
ComfortDelGro Corporation C52 6.3 15.9 87.4 2.9 Trucking
SMRT Corporation S53 2.2 -7.5 -11.7 2.3 Railroads
SBS Transit S61 0.6 13.2 37.5 1.4 Trucking
Average     7.2 37.7 2.2