Flat quarter YoY. CDL reported a small growth of 3.4% and 1.8% in revenues and net profit, to S$832.9mil and S$134.5mil respectively. 9MFY12 PATMI of S$429.0mil met 80.6% of our full year estimates, and xx% of consensus estimates.

Property Development'growth driver with a robust project pipeline. CDL recorded an 8.4% YoY growth in property development revenues to S$348.8mil in the quarter. Contributing projects include 368 Thomson, Cube 8 and Tree House, among others. In particular, projects such as The Glyndebourne, Buckley Classique and H2O Residences contributed to the top and bottom'line for the first time in the quarter. CDL's project pipeline remains robust, with new projects Echelon (Alexandra Road) and Pasir Ris Grove slated for launch in 4Q2012 and early 2013, amongst others under planning.

Won another GLS site. In addition to winning the bid for a GLS site at Buangkok Drive/Sengkang Central in June 2012, CDL won another GLS site on 8 Nov 2012 at the Sengkang West Way/Fernvale Link for
an EC development. CDL remains upbeat on the residential mass'market in Singapore, driven by strong liquidity in a low interest rate environment.  We expect CDL to be a strong contender in the mass'market segment going forward, similar to Keppel Land.

Hotel Operations earnings fell 24.4% YoY in the quarter. Hotel Operations revenues saw a slight decline 3.5% YoY to S$381.1mil in the quarter, whereas earnings fell 24.4% to S$55.7mil. The weaker earnings is attributable to pre'operating expenses incurred by W Singapore Sentosa Cove Hotel, which was fully launched only at end'Oct this year.  In addition, the sale and leaseback of Studio M Hotel in 2Q2011 contributed to weaker growth in this segment in 2012.

Maintain BUY, FV of S$14.06. We continue to value CDL at RNAV, favouring its low net gearing of 0.30x.

Source: AmFraser