CityDev’s profit up 13.7% to $404m in Q3

Revenue jumped 58.3% last quarter.

City Developments reported a 13.7% year-on-year jump to $404m in its gross profit for the third quarter. Its revenue jumped 58.3% year-on-year to $1.3b.

According to OSK DMG, CityDev's profit hinged on stellar sales of its Singapore developments, while its many overseas projects are yet to take fruit.

“We believe the market has likely priced in too excessive a discount on its SG residential exposure, and not affording time for its overseas diversifications to bear fruit.City Developments (CDL) is trading at a 25% discount to RNAV, which is below its historical mean. At this price level, we think valuations are undemanding,” noted OSK DMG.

Here’s more from OSK DMG:

Takes time to diversify. We expect it will take some time before CDL’s overseas residential projects start to contribute to earnings.

In China, CDL is still pending the launch of Eling Residences and Suzhou HLCC, dependent on market conditions. In Japan, CDL plans to develop luxurious high-end condominiums at the former residence of Seiko’s founder, Mr Kintaro Hattori’s freehold land site in Tokyo.