City Dev

City Dev: Results below expectations. 2Q rev at $787.8m -19.6% yoy -7.0% qoq, net profit at $137.7m -37.7% yoy -12.2% qoq. Results were lower largely due to a fall in sales revenue from property dev -39.8% yoy. Property dev continued to be the lead contributor to performance and although strong sales were record in recent residential launches, co was not able to recognize locked-in profits as projects has yet to reach recognition stage. Co continues to see strong buying interest in mass mkt projects although high-end residential segment is being affected by the economy and the ABSD measures. Decreases in rev was attributed to absence of contributions from Cliveden at Grange, Shelford Suites and Livia as well as lower contribution from One Shenton and Volari. Gearing remained low at 21% excluding revaluation surpluses from investment properties Co trades at current P/B of 1.6x.