City Developments 02 (Nov 16 - Dec 24)

Re: City Developments 02 (Nov 16 - Dec 21)

Postby winston » Mon Mar 01, 2021 11:43 am

not vested

City Developments
Dragged by impairments


CIT’s FY20 net loss of S$1.92bn is below our full-year forecast.

New residential launches, asset enhancements and the potential unlocking of
hotel asset value drive our positive outlook for FY21F.

We reiterate our Add call with a lower RNAV-based TP of S$8.97.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 185E68D49E
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Re: City Developments 02 (Nov 16 - Dec 21)

Postby winston » Mon Mar 01, 2021 11:48 am

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BUY maintained; lower TP to S$10.50.


We maintain our BUY rating on City Developments (City Dev) and TP of S$10.50.

Our TP implies 0.9x price/net asset value (P/NAV), close to -1 standard deviation (SD) of its 5-year mean.

Although the COVID-19 pandemic has impacted most of City Dev’s business segments especially the hospitality sector, its current share price has priced in most of the downside risks.

Currently trading at 0.7x P/NAV, close to -1.5 SD of its 5-year mean, we believe valuations are too cheap to ignore as City Dev is well positioned to leverage on the recovery post-COVID.

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
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Re: City Developments 02 (Nov 16 - Dec 21)

Postby winston » Mon Mar 01, 2021 2:27 pm

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City Developments Ltd (CIT SP) - Kitchen sinking end to FY20

Developments Limited (CDL) is a leading real estate developer with three core business segments, namely Property Development, Hotel Operations and Investment Properties.

It has diversified operations in countries such as Singapore, China, UK and US.

Although the impact from the Covid-19 pandemic is apparent, we believe negatives are priced in.

Furthermore, over the medium to longer term, we see opportunities for management to unlock value via:-
1. The restructuring of its Millennium & Copthorne hotels portfolio,
2. Potential spin-off of its UK commercial properties into a new REIT and
3. Redevelopment of some of its older commercial properties in Singapore to benefit from the government's CBD Incentive Scheme.

BUY.

Source: OCBC
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Re: City Developments 02 (Nov 16 - Dec 21)

Postby behappyalways » Sun Mar 07, 2021 4:55 pm

The million dollar question is the quality of the future management. To take a 93% writedown for a less than a year investment, especially for someone who is said to have 10 years of experience in China plus directors resigning....does not reflect well on the person.


CDL, on April 15, 2020, acquired a 51.01% joint controlling interest in the Sincere Property Group – a decision which caused three directors to resign later in the year, including Kwek Leng Peck, cousin of CDL’s executive chairman Kwek Leng Beng.

CDL records $1.78 bil impairment on Sincere Property Group; declares $1.92 bil loss for FY20
https://www.theedgesingapore.com/capita ... -loss-fy20
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Re: City Developments 02 (Nov 16 - Dec 21)

Postby behappyalways » Thu Mar 11, 2021 6:49 pm

Chinese Firm’s Bond Lapse Exposes Rift With Singapore Parent
https://www.bloomberg.com/news/articles ... emium-asia
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Re: City Developments 02 (Nov 16 - Dec 21)

Postby winston » Fri Mar 12, 2021 8:06 am

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Developer CDL rejects claims by Chinese firm Sincere Property regarding bond lapse

by Sue-Ann Tan

Sincere Property, which is CDL's joint venture investment in China, said the developer delayed decision-making, seriously affecting its ability to make use of opportunities to raise funds and improve cash flow.

"Sincere Property has misrepresented the circumstances, the actions surrounding the investment, the relationship between both parties and CDL's efforts to engage the joint venture partners to deal proactively with the challenging operating environment.

"There have been occasions where CDL could not support Sincere Property management's recommendations as they contravened CDL's corporate governance as a listed company and the recommended use of funds were not in the best interest of all shareholders."

"Due to the complexities of the debt structure and cross-collaterals of Sincere Property's assets, the restructuring process has remained difficult and long-drawn amid an already challenging operating environment."


Source: Straits Times

https://www.straitstimes.com/business/c ... -regarding
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Re: City Developments 02 (Nov 16 - Dec 21)

Postby behappyalways » Sat Mar 13, 2021 5:35 pm

CDL plans bond issue as Sincere Property defaults, and blame game begins
https://www.theedgesingapore.com/capita ... ame-begins
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Re: City Developments 02 (Nov 16 - Dec 21)

Postby winston » Mon Mar 15, 2021 8:06 am

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Singapore property dynasty’s China deal becomes cautionary tale

The impairment constituted almost all of CDL’s S$1.9 billion investment in Sincere, which more than doubled from its initial outlay as its partner’s finances deteriorated.

Now CDL has had enough, saying it will no longer inject funds until the Chinese company returns to health.

Cash-strapped Sincere has dragged their rift into the open after missing a bond repayment.

“CDL could have overestimated the easiness of cashing out on Sincere’s heavy assets post-pandemic, and underestimated its refinancing difficulties,” said Hung. “Then things quickly went downhill when the three red lines rule was introduced in August.”


Source: Bloomberg

https://www.theedgemarkets.com/article/ ... onary-tale
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Re: City Developments 02 (Nov 16 - Dec 21)

Postby behappyalways » Sat Mar 20, 2021 3:17 pm

CDL's China deal is a cautionary tale
https://www.theedgesingapore.com/news/c ... onary-tale
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Re: City Developments 02 (Nov 16 - Dec 21)

Postby behappyalways » Tue May 11, 2021 1:48 pm

Fourth CDL director, Jenny Lim, quits board
https://www.theedgesingapore.com/news/c ... uits-board
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