City Dev

City Dev: BoAML reinstates Underperform (TP $9.45) set to 25% discount of FY15E RNAV. The house believes revitalization of business model from a domestic player to a regionalized, asset-light operator will take time to bear fruit with the road likely to be bumpy. Meanwhile, SG residential remains the key driver. With unsold inventory (by value) skewed toward prime/luxury segment, City Dev’s RNAV may be reduced by 4% for an estimated 10% decline in SG private residential prices. City Dev is accelerating its overseas expansion, a positive step forward, but execution during initial stages is unlikely to be smooth. CEO guided it will take 5-10 years before it can achieve an AUM of similar size to its competitors.