Bukit Sembawang

Bukit Sembawang: Though 4QFY13 revenue dropped 9.6% yoy due to lower profit recognition, lower operating costs enabled core net profit to rise 36% yoy. FY13 saw the completion of a no. of projects, including Luxus Hills Phases 2 and 3 and non-landed residential property Verdure. 4Q13 was a non-event , with earnings coming from progressive recognition of the fully sold Luxus Hills Phase 4 and 5 (due for completion in FY14 and FY15) and progressive recognition of sales at The Vermont and Skyline Residences. CIMB expects Luxus Hills Phase 6 and 7 to be launched by year end, at higher ASPs of above $1,600 psf. Expects high end non-landed projects St Thomas Walk and Paterson Collection to be launched in phases beginning end 2013-early 2014. The house continues to like Bukit Sembawang for its strong balance sheet and stock of landed sites, which could last for another 7-10 years. Reiterates Outperform, lifts TP to $7.41 from $7.28.