Brokers' Take

City Developments | Hold

Nov 13 close: S$9.53

Target price: S$9.47

DMG & Partners Research, Nov 13

WE expect it will take some time before City Developments' (CDL's) overseas residential projects start to contribute to earnings. In China, CDL is still awaiting the launch of Eling Residences and Suzhou HLCC, depending on market conditions. In Japan, CDL plans to develop luxurious high-end condominiums at the former residence of Seiko founder Kintaro Hattori's freehold land site in Tokyo.

CDL is trading at a 25 per cent discount to revised net asset value, which is below its historical mean. At this price level, we think valuations are undemanding. We believe the market has likely priced in too excessive a discount on its Singapore residential exposure, and not affording time for its overseas diversifications t…