• City Developments’ 2Q/1H18 results in line; special interim DPS of 6 Scts declared.
• Strong residential profit recognition in 2Q; new launch plans for 2H.
• Strategic plans to expand recurring EBITDA to S$900m over the next 10 years.
• Maintain ADD with unchanged Target Price of S$10.89.

2Q18 Results Highlights

City Developments’ 2Q18 PATMI rose 79.5% y-o-y to S$205m on a 59% y-o-y jump in revenue to S$1.36bn. 

For 1H18, PATMI rose 35.8% y-o-y to S$284m, in line at 48% of our FY18 forecast. The improved performance came largely from residential activities, which accounted for 78%/57% of 2Q/1H18 PBT. 

A special interim DPS of 6 Scts has been declared.

Source: CGS-CIMB Research - 08 Aug 2018