- City Developments' share price has significantly underperformed (-15% year-to-date) vs the STI (+3%). Key reason: We believe investors fear its rising debt, which results in interest cost pressures and low ROEs.
- - Read this at SGinvestors.io -
- We raise our RNAV discount to 50% from 45% amid gearing concerns, but maintain our call with City Developments' share price trading near historic lows and -2 standard deviation below its P/RNAV – limiting the downside.
Positive replenishment of Singapore residential landbank...
- - Read this at SGinvestors.io -
- We see City Developments’s bid of S$1,202/sq ft/plot ratio as reasonably attractive, at ~30% below comparable land parcels sold in past years and accretive to bottomline.
- City Developments has also submitted two joint tender bids for the master developer site at Jurong Lake District, the results of which will be announced by 3Q24. These moves follow the healthy response to City Developments’s projects, with 429 units sold in 1Q, generating S$737m in sales value or more than 3x of last year’s numbers.
…and neutral on European acquisitions.
- Read more at SGinvestors.io.
Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2024-06-06
Read also RHB's most recent report:
2024-11-26 City Developments - Resilient Singapore Performance; BUY.
Previous report by RHB:
2024-09-25 City Developments - Beneficiary Of Rate Cut Cycle; BUY.
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
