The case for CityDev

SINGAPORE (Aug 11): OCBC Investment Research and CIMB are hanging on to their “buy” recommendations for City Developments with target prices of $9.89 and $10.38 respectively.

To recap, CDL reported a 32% rise in revenue to $1.1 billion although earnings remained flat at $133.8 million in 2Q16. For 1H16, earnings fell 6.8% to $239 million. CDL declared a special interim dividend of 4 cents.

OCBC analyst Eli Lee says CDL’s stronger revenues came from the progress recognition from Lush Acres which was fully sold upon attaining its temporary occupation permit in 2Q16. However, this was offset by foreign exchange losses, lower finance income and higher tax expenses.

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