Broker Name: CGS International
Date of Report: March 2, 2026
Excerpt from CGS International report.
Report Summary
- City Developments (CIT) reported strong growth in 2H25, with revenue up 11.1% year-on-year and PATMI jumping 374.3%, driven by capital recycling and robust residential sales. However, FY25 PATMI was below estimates due to impairment losses.
- CIT is prioritizing asset divestments and capital redeployment, securing ~S\$2bn in contracted divestments and investing S\$1.7bn in new assets, aiming to optimize its portfolio and strengthen its balance sheet.
- The company sold 1,657 residential units in FY25 (13% market share), with a strong launch pipeline for 2026-27 and high occupancy rates in office and retail assets.
- Dividend payout policy enhanced to at least 35% of PATMI, with a proposed 40% payout for FY25; net debt to equity ratio stands at 0.71x.
- CGS International maintains “Add” rating and raises target price to S\$12.11, citing catalysts like faster asset recycling and portfolio optimization. Risks include macroeconomic slowdown and property cooling measures.
- ESG scores are strong (A- overall), with significant reductions in carbon emissions and energy use, though no valuation premium applied for ESG achievements yet.
above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgs-cimb.com
