City Developments Limited’s (CDL) FY19 results were in-line with our expectations. Revenue fell 18.8% to S$3,428.7m due largely to lower contributions from residential projects in Singapore. However, PATMI inched up 1.3% to S$564.6m and this formed 97.6% of our FY19 forecasts.

For 4Q19, CDL’s revenue and PATMI jumped 20.1% and 12.5% YoY to S$946.9m and S$87.7m, respectively. A final and special dividend of 8 and 6 S cents per share was declared, similar to FY18. Including the interim DPS of 6 S cents, total FY19 proposed dividends amounted to 20 S cents per share, unchanged from FY18.

We will provide more details after the analyst briefing. Our last rating was a BUY with a S$12.02 fair value.

Source: OCBC Research - 26 Feb 2020