Broker: DBS Bank
Date of Report: 01 Mar 2026
Excerpt from DBS Bank report
Report Summary
- Stock Focus: City Developments Ltd (Bloomberg: CIT_SP_Equity)
- Action: Maintain BUY
- Target Price: SGD 12.00 (previously SGD 11.80)
- Key Idea: City Developments Ltd reported a >2x y/y increase in FY25 PATMI to SGD 630mn, about 22% above DBS estimates, driven by strong Singapore residential development recognition and sizeable divestment gains.
- Highlights:
- Company is trading at a ~50% discount to RNAV, making valuations compelling despite a strong rally.
- Dividend payout for FY25 is 28 Scts/share (40% payout ratio); new formal dividend policy set at minimum 35% of PATMI.
- Key catalysts: Continued asset recycling (notably in UK and China), robust residential sales, and potential strategic review updates.
- Net gearing rose slightly to 71% due to new acquisitions.
Above is an excerpt from a report by DBS Bank. Clients of DBS Bank can be the first to access the full report from the DBS Bank website: https://www.dbs.com
