City Dev

City Dev: (S$7.96) 1Q16 dragged by resi and hotels; share price dip buying opportunity
-1Q16 net profit fell 14.4% to $105.3m, revenue (-11.2%) weighed by resi and hotel
- Property revenue (-25%) and pre-tax profit (-22%) came off from absence of contribution form The Palatte, H20 Residences, and at JV level, The Rainforest EC.
- Hotel revenue (-4.4%) on lower occupancies and RevPar (-2.6%), on NY, London, Singapore weakness.
- Looking ahead, eye support from high-end Gramercy Park, and overseas contributions
- MKE recommends to Buy the recent correction.
- CDL is currently trading at 0.8x P/B and 0.67x P/RAV, based on MKE’s estimate.

Latest broker ratings:
Credit Suisse maintains Outperform, reduces TP to $11.70 from $12.00
Daiwa maintains Buy with TP of $11.17
Macquarie maintains Buy with TP of $11.00
UOB KayHian maintains Buy with TP of $10.86
CIMB maintains Add with TP of $10.32
Morgan Stanley maintains Overweight with TP of $10.00
JPMorgan maintains Overweight with TP of $9.90
OCBC mantains Buy with TP of $9.89
Maybank KE maintains Buy, reduces TP to $9.82 from $9.84
RHB maintains Buy with TP of $9.22