- City Developments (SGX:C09)'s FY23 PATMI of S$317.3mil (-75.3% y-o-y) missed our estimate by 15% due to higher-than-expected finance costs (+73% y-o-y). The y-o-y decline in PATMI was largely attributable to the absence of outsized divestment gains from the divestment of Millennium Hilton Seoul (S$926mil) in FY22.
- - Read this at SGinvestors.io -
- We raise our FY24e PATMI estimate for City Developments by 15%, factoring in higher contributions from hotel operations.
- City Developments is a proxy for the Singapore residential market and hospitality recovery. It is trading at an attractive 55% discount to our RNAV/share of S$12.50.
The Positives
Record revenue in FY23 boosted by property development segment (+102% y-o-y).
- - Read this at SGinvestors.io -
- In FY23, City Developments and its joint venture associates sold 730 units with a total sales value of S$1.5bn (FY22: 1,487 units with a total sales value of S$2.9bn). Sales were largely driven by The Myst and Tembusu Grand, which sold 60% of its 638 and 51% of its 408 units to date respectively. The launch of Lumina Grand EC in Jan 24 was well received, with 55% sold to date.
- City Developments plans to launch two projects in 2H24 - Union Square Residences (366 units) and Champions Way (348 units). It is still monitoring market conditions to determine the appropriate time to launch Newport Residences, which has no ABSD deadline.
Hospitality segment continues to improve.
- Read more at SGinvestors.io.
Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @ https://www.stocksbnb.com/.
Darren Chan Phillip Securities Research | https://www.stocksbnb.com/ 2024-03-05
Read also Phillip's most recent report:
2024-08-19 City Developments - Accelerating Capital Recycling Efforts.
Previous report by Phillip:
2024-05-23 City Developments - Buying Back Shares.
Price targets by 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 Dividends & Corporate Actions,
City Developments News Articles