Bukit Sembawang

Bukit Sembawang: 3Q/9M13 earnings were below expectations at 11%/42% of CIMB’s full-year on back-loaded recognitions.House alter FY13-15 EPS on recognition timing and raise target price after lowering discount to RNAV to 30% from 35%, as mgt resumes monetisation of landed landbank. Luxus Hills Phase 6 will be launched in 1H2013, as the co expects demand for landed projects to remain resilient. Take comfort in the switch to landed launches after recent tightening measures, and continue to expect pricing to be >$1,600psf. BukitSemb still has two high-end non-landed sites at St Thomas Walk and Paterson suites due for completion in 2013/14. Expect high-end non-landed launches to be delayed in favour of landed projects (>70% of landbank). Ratings as follow: CIMB maintains O/p with $7.28 TP