- The results briefing for City Developments (SGX:C09) was a somewhat downbeat affair given its reported 42% y-o-y decline in revenue to S$1.6b and PATMI of S$88m (+33% y-o-y) that was helped by divestment gains. The miss was due to the property development business where timing of revenue recognition was not in the company’s favour in 1H24, however the profit recognition should come in the few quarters.
- - Read this at SGinvestors.io -
High debt load remains a drag.
- As was evident in 2023, City Developments’s high debt load coupled with high interest rates continued to be a drag on profitability in 1H24. Finance costs increased 25% y-o-y to S$275m in 1H24 with net gearing having risen to 0.69x as at end-1H24 vs 61% as at end-23.
- - Read this at SGinvestors.io -
Capital recycling still a work in progress.
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Adrian LOH UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-08-15
Previous report by UOB:
2024-02-29 City Developments - Better-Than-Expected 2023 Results.
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
