Limited Downside; Maintain HOLD

• City Developments’ 1H18 EPS is in line, at 44% of our FY18E estimate. Nonetheless, we trim FY18E EPS by 5% to adjust for its deferred launch plans, while keeping FY19-20E numbers. Consequently, our RNAV dips to SGD13.88 from SGD13.91.
• Our Target Price stays at SGD10.40, a 25% discount to RNAV. With the stock trading close to -1SD of its 10-year average RNAV discount, we believe the market has priced in potential residential-market weakness.
• Maintain HOLD. Prefer UOL (SGX:U14) and CapitaLand (SGX:C31) for sector exposure.

Source: Maybank Kim Eng Research - 08 Aug 2018