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Kia ora, New Zealand!

■ CD won a S$1.13bn contract to operate rail services in Auckland through its
50%-owned JV with UGL Rail. Initial term of 8 years to commence Jan 2022.
■ We are positive on the win; this is an asset-light business model with stable
cash flow and defensive earnings. We estimate EPS accretion of 1.1%-1.8%.
■ Reiterate Add and TP of S$1.80. CD is a beneficiary of economy reopening.
Value unlocking in Australia, positive updates on DTL are potential catalysts.