Research reports- Transport
Performance highlights:
• Clear sector leadership: DTC lifted its taxi market share to 45% in Q1, double its closest competitor. Its vehicle fleet grew 14% yoy.
• Accelerating growth: Q1 revenue grew 16% yoy. Bike, bus and taxi segments saw the strongest uplift
• Margin expansion: DTC’s EBITDA margin rose 5 percentage points yoy, via scale economies and improved utilization.
This report does not constitute investment advice. Please read the important information contained at the end of this document.
Overview :
Established in 1994, Dubai Taxi Company (DTC) is the largest of five taxi franchises operating in the UAE Emirate. It is 75%-owned by the Government of Dubai’s Department of Finance. Other shareholders include successful subscribers to the November 2023 IPO, such as the Emirates Investment Authority and the Pensions and Social Security Fund of Local Military Personnel. As with other RTA-linked stocks (Salik and Parkin), one of the key attractions of the shares is the dividend yield; the company has committed to distribute at least 85% of its annual profits.
If you would like a copy of the full report
Parkin
Investors make space for Parkin, Dubai’s cash-generative parking operator:
• Parkin gives predictable exposure to Dubai’s growth story in an asset-light, cash generative wrapper
• The transaction has garnered significant investor interest. Trading should commence on 21 March
• Key concerns: heavy reliance on the RTA; limited strategic flexibility; vulnerability to tech disruption.
Is Parkin a shoo in?
That’s what many investors will be asking as they consider whether to subscribe to the latest UAE IPO. Others have already made their decision; the issue was fully subscribed within minutes, according to press reports. Ready access to subscription financing will further support the oversubscription rate.