$COMFORTDELGRO CORPORATION LTD(C52.SI)$Attractive ride at -2SD historical mean. Trading at 1.2x PB (-2SD of historical mean) as ROE jumps to ~9% (FY21F), ComfortDelgro&rsquo s (CD) current price seems unjustified. Investors should look beyond FY20F. Reiterate BUY.

Consolidation of P2P industry. We are looking at smaller private rental car fleet providers exiting the market, bringing a balance to the point-to-point (P2P) supply-demand dynamics.

Phase 3 re-opening could be another trigger. Tracking mobility data, people are now moving about more. With sustained low infection rates, a Phase 3 re-opening could be a near term catalyst.

Our TP is raised to S$ 1.96 as we revise our valuation peg to 1.6x FY21F P/BV, which is -1 S.D. of its historical average, on expectations of ROE jumping to c.9% in FY21F, after a dismal FY20F. The counter is trading below 1.2x P/BV, or -2 S.D. of its average.

Somethings need to be on the ground and you get a feel. Trying getting a taxi on the road tonight and see how long it takes to hail one. Try to get a cab via app too. Talk to the uncles in the taxi to get a live update. They will just tell you that business is good. Taxi uncles are ignoring apps during peak hours. Off peak hours, apps get them business without much stoppage.

Bus and MRT are packed to the brim again.

The only thing weighting down CDG is oil prices. However with a strong ridership, its much easier to make $$ to cover the cost.