City Developments 02 (Nov 16 - Dec 26)

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city-developments-offers-gbp18-bil-remaining-shares-millennium-copthorne
https://www.theedgesingapore.com/city-d ... -copthorne

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city-developments-posts-83-fall-3q-earnings-1561-million-absence-one-gains
https://www.theedgesingapore.com/city-d ... -one-gains

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mc-hotels-agrees-sweetened-620-pence-share-offer-citydev
https://www.theedgesingapore.com/mc-hot ... er-citydev

[winston]

not vested

City Developments Limited: Fundamental outlook constructive

According to flash estimates, URA’s overall private residential price index increased 0.7% QoQ with prices all rising across all three sub-segments.

We see the Singapore residential sector to be in the early stages of sustained upturn, and expect home prices to rally 3% - 8% in 2018.

This will be supported by a recovery in housing rents which are forecasted to increase 5% - 10%, a neutral legislative stance from the authorities and a buoyant en-bloc market.

As a major proxy to the domestic housing market, the group is poised to benefit from stronger home sales at their launch pipeline ahead, including New Futura and a 861-unit condominium project at Tampines Ave 10.

Given stronger market conditions, we update our model for firmer ASP assumptions and lower our discount to RNAV from 20% to 10%, and fair value estimate increases from S$13.50 to S$15.30.

Source: OCBC

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City Developments' takeover bid for M&C Hotels fails
https://www.theedgesingapore.com/city-d ... tels-fails

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CDL back on familiar ground; wins 2 out of 3 land tenders
https://www.theedgesingapore.com/cdl-ba ... nd-tenders


LAND PARCEL AT HANDY ROAD
https://www.ura.gov.sg/-/media/Corporat ... 18-05b.pdf


LAND PARCEL AT WEST COAST VALE
https://www.ura.gov.sg/-/media/Corporat ... 18-05c.pdf

[winston]

not vested

City Developments Limited: 4Q17 results met expectations

City Developments Limited (CDL) reported its 4Q17 results this morning which met our expectations.

Revenue jumped 13.8% YoY to S$1,327.7m and this was driven by The Brownstone EC which obtained its TOP in Oct 2017.

PATMI came in at S$186.7m, which was a decline of 23.4% as compared to the same period in the preceding year.

For FY17, CDL’s revenue was down marginally by 2.0% to S$3,828.6m, while PATMI of S$538.2m represented a dip of 17.6%, as its FY16 performance was boosted by a sizeable contribution from Hong Leong City Center in Suzhou. The latter formed 96.7% of our full-year forecast.

A final ordinary and special dividend of 8 S cents and 6 S cents per share was declared, respectively, and this culminated in total dividends of 18 S cents per share for FY17 (interim special DPS of 4 S cents), versus 16 S cents for FY16.

Looking ahead, CDL is planning to launch a new 861-unit condominium The Tapestry in Mar this year, which is located along Tampines Avenue 10.

Separately, it was also announced that CDL had submitted the top bid for a Sumang Walk site together with its JV partner TID. The S$509.4m bid price translates into S$583.0 psf ppr, and was 4.8% higher than the second highest bidder. We estimate breakeven ASP of approximately S$950-S$1k psf.

We will provide more updates after the analyst briefing.

Source: OCBC

[winston]

not vested

City Developments Limited: A busy year ahead

City Developments Limited (CDL) reported its 4Q17 results which met our expectations.

PATMI came in at S$186.7m, which was a decline of 23.4% YoY.

A final ordinary and special dividend of 8 S cents and 6 S cents per share was declared, respectively, and this culminated in total dividends of 18 S cents per share for FY17, versus 16 S cents for FY16.

CDL sold a robust 1,171 residential units in Singapore (including share of JV partners) in FY17, representing total sales value of S$1.93b. It announced an initiative to create a sustainable fund management platform, with a goal of attaining an AUM of US$5b by 2023.

Looking ahead, CDL has a strong pipeline of ~2,750 units available for launch in Singapore. Management highlighted that it typically targets margins above 10% on costs for its development projects in Singapore, and maintained upbeat on the margins of its projects on hand.

Factoring in CDL’s full-year results in our model, we revise our RNAV-derived fair value to S$15.91 (previously S$15.30).

Source: OCBC

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CityDev says 315 units at The Tapestry sold over weekend launch
https://www.theedgesingapore.com/cityde ... end-launch

[winston]

not vested

City Developments Limited: Bonanza of launches to come

City Developments Limited (CDL) reported its 1Q18 results which missed ours and the street’s expectations.

Despite the 35.0% YoY jump in revenue to S$1,057.8m, PATMI fell 16.3% YoY to S$80.0m due to lower gross profit and higher finance costs, effective tax rate and minority interests.

During the quarter, CDL together with its JV associates sold 459 units in Singapore with an aggregate sales value of S$792.6m, representing sturdy growth of 57% and 66% YoY, respectively.

Looking ahead, CDL has a robust pipeline of launches amounting to ~3.1k units, based on our estimates.

After adjustments, our RNAV-derived fair value estimate declines marginally from S$15.91 to S$15.78.

Maintain BUY. CDL continues to be one of our top picks within the property sector, as the group looks poised to benefit from the firm uplift in the Singapore residential market with the largest land bank in Singapore catering to all segments such as EC, mass, mid and high-end.

Source: OCBC