City Developments - OCBC Investment 2024-03-01: Targeting Divestments As Gearing Rises

• City Developments (SGX:C09) reported FY23 revenue of S$4,941.1m, representing an increase of 50% y-o-y. However, headline PATMI slumped 75% y-o-y to S$317.3m due to higher finance costs and an absence of substantial divestment gains which were registered in FY22.

FY23 core PATMI jumped fourfold y-o-y to S$188.6m and met our expectations

• - Read this at SGinvestors.io -
• Management declared a final dividend of 8 Singapore cents. Including its interim special dividend of 4 Singapore cents, the total dividend for FY23 amounted to 12 Singapore cents, lower than FY22’s dividends of 28 Singapore cents.

Perfomance by segments

• - Read this at SGinvestors.io -
• Next up was its hospitality operations, which drove an increase in PBT by 71% to S$55m.
• Investment properties suffered a loss before tax of S$27m and this was likely attributed to higher financing costs.

Hospitality operations expected to remain robust

• Read more at SGinvestors.io.

Above is an excerpt from a report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.

Read also OCBC's most recent report:
2025-05-21 City Developments - Some Encouraging Signs From 1Q25 Updates.

Previous report by OCBC:
2025-02-27 City Developments - Muted Results & Potential Share Price Overhang.

Price targets by 2 other brokers at City Developments Target Prices.

Listing of research reports at City Developments Analyst Reports.

Relevant links:
City Developments Share Price History,
City Developments Announcements,
City Developments Dividend Payout Dates & Corporate Actions,
City Developments News