CDL: Maybank-KE believes 2H15 share-price weakness is arguably caused by a tepid office market.
Due to lower investment-property valuations, house cuts RNAV by 4% to $12.22 and lowers its TP to $10.40.
However, CDL currently trades at a 40% discount to RNAV and Maybank-KE believes this is not warranted as it implies stub valuations during GFC period.
With any roll-back of cooling measures, home sales may be revived and CDL has multiple options to monetise held-at-cost assets.
The counter is now Maybank-KE's top sector pick.
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