F&N: Nomura reiterate Buy with TP $7.60. Note that at a 27% discount to valuation, believe the shares have more than priced in these concerns, especially given the group's low-cost land bank and relatively small inventory in SG. Div yield of 3% is an additional source of returns.
Note that pullback in commodity prices should help margins while market share gains drive volume growth. Presold development projects in SG should sustain development earnings, supplemented by chunky gains from divestments including Bedok Point and Changi City. Downside risk to SG property exposure is limited given its small inventory of 1,250 units. Could also see capital mgt through higher or special div.
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