City Developments 02 (Nov 16 - Dec 26)

[winston]

not vested

BRIEF-City Developments Says Expects Loss For FY 2020 Vs Profit In FY Ended 31 Dec 2019

Nov 30 (Reuters) - City Developments Ltd :

* EFFECTS OF COVID-19 PANDEMIC ARE EXPECTED TO CONTINUE INTO 2021

* PROPERTY DEVELOPMENT SEGMENT EXPECTED TO REGISTER DECREASE IN REVENUE FOR FY 2020

* GROUP'S HOTEL OPERATIONS EXPECTED TO RECORD LOSSES FOR FY2020

* SEES LOSS FOR FY 2020 VERSUS PROFIT FOR FY ENDED 31 DEC2019

* DOES NOT EXPECT CURRENT PACE OF RECOVERY TO SIGNIFICANTLY COUNTER ADVERSE IMPACT ON ITS OPS AND FINANCIAL PERFORMANCE FOR FY 2020

Source: Reuters

[winston]

not vested

City Developments (CIT SP)
3Q20 Business Update: Profit Warning Largely Expected

CDL released its 3Q20 business update and a profit warning that was generally in line with expectations.

Its Sincere investment in China and its hospitality arm remain drags on the overall business.

Meanwhile, Singapore property development and its office portfolio remain reasonably resilient in our view.

Maintain BUY. Target price: S$9.20.

Source: UOBKH

https://research.uobkayhian.com/content ... e6dc5d63ca

[behappyalways]

Another CDL director resigns in relation to Sincere Property investment

CDL had in April acquired a 51.01% joint controlling interest in Sincere Property for an initial investment of RMB 4.39 billion ($880 million).

Source: The Edge


https://www.theedgesingapore.com/news/a ... investment

[behappyalways]

CDL appoints special working group to review and improve liquidity and profitability for Sincere Property Group
https://www.theedgesingapore.com/news/c ... fitability

[winston]

not vested

Scion of Singapore's richest clan strives to salvage China deal

Mr Kwek, who's been at the helm for three years, spearheaded the Sincere deal in 2019. With its pipeline of 64 projects and sizeable land bank, the developer increased CDL's presence in China to about 20 cities from three.

Through September, CDL lost $76 million on the investment last year. While the company hasn't announced its results for the period, CDL has said revenue at its property-development segment dropped 15 per cent.

Before the Kweks went for Sincere, the property unit had attracted other investors, including some of China's biggest developers - like China Evergrande Group, Sunac China Holdings and Jinke Properties Group - but they all abandoned the idea, according to local media.

"The regulatory tone is increasingly negative for Chinese developers' growth, hence adding uncertainty to Sincere's profit contribution to CDL."

Source: The Edge

https://www.straitstimes.com/business/c ... china-deal

[winston]

not vested

CDL flags 'material impairment loss' on Sincere Property investment

The group's total investment in Sincere Property stood at $1.8 billion as at Dec 31, 2020.

CDL's net gearing ratio, factoring in revaluation surplus from investment properties, stood at 52 per cent as at Sept 30, 2020, the company said, adding that it has strong cash reserves of $3.3 billion.

It also maintains a strong liquidity position comprising cash and available undrawn committed bank facilities totalling $4.7 billion, it said.

Its debt expiry profile remains healthy, with total gross borrowings at a weighted average debt expiry of 2.4 years.

Source: Straits Times

https://www.straitstimes.com/business/c ... e-property

[winston]

not vested

CDL acquires majority stake in Shenzhen tech park from Sincere Property, China Ping An units

SINGAPORE (THE BUSINESS TIMES) -Property developer City Developments Limited (CDL) is acquiring a 55 per cent stake in a Shenzhen technology park from its joint venture investment Sincere Property Group and from two entities of China Ping An for RMB 850 million (S$174 million).

CDL said that it has entered into agreements with the three entities to acquire an 84.6 per cent stake in holding company Shenzhen Tusincere Technology Park Development, and will assume existing shareholders' loan proportionately.

Sincere Property will continue to hold the remaining 15.4 per cent in the holding company, which controls a 65 per cent stake in Shenzhen Longgang Tusincere Tech Park.

The remaining 35 per cent in the leasehold tech park is owned by a state-owned enterprise, Shenzhen Longgang District.

CDL has a 51 per cent per cent stake in Sincere, with its investment to date in the Chinese property group totalling S$1.8 billion.

Source: Business Times

https://www.straitstimes.com/business/p ... china-ping

[winston]

not vested

Quick View
Target Price*S$ 10.5
Recomendation**BUY
Market Cap*S$ 7672m

Valuation
Our TP of S$10.50 is based on a 25% discount to RNAV, which implies 0.9x P/NAV or -1SD of its 5-year mean.

Source: DBS

https://www.dbs.com.sg/treasures/aics/s ... CIT_SP.xml

[winston]

not vested

CDL records $1.78 bil impairment on Sincere Property Group; declares $1.92 bil loss for FY20

by Felicia Tan

To write down 93% of its total investment in the Sincere Property Group, which amounts to $1.78 billion.

Revenue for the 2HFY2020 dropped 43.5% y-o-y to $1.03 billion, while FY2020 revenue declined 38.5% y-o-y to $2.11 billion.

The group’s net asset value (NAV) per share as at Dec 31, 2020, stands at $9.38, compared to the $11.60 the year before.

Source: The Edge

https://www.theedgesingapore.com/capita ... paign=FREE

[winston]

not vested

CDL records $1.78 bil impairment on Sincere Property Group; declares $1.92 bil loss for FY20

by Felicia Tan

The significant loss was due to the group’s decision to write down 93% of its total investment in the Sincere Property Group, which amounts to $1.78 billion.

Furthermore, the group says it is “cautious” that Sincere Property may face “significant liquidity challenges” considering Sincere’s debts in the next 12 months and China’s “three red lines” policy to cap borrowings for real estate developers.

The group had made impairment losses of $33.9 million on its hotel properties in 1HFY2020.

Revenue for the 2HFY2020 dropped 43.5% y-o-y to $1.03 billion, while FY2020 revenue declined 38.5% y-o-y to $2.11 billion.

The group’s net asset value (NAV) per share as at Dec 31, 2020, stands at $9.38, compared to the $11.60 the year before.

Source: The Edge

https://www.theedgesingapore.com/capita ... -loss-fy20