Singapore Stocks: CDL's 2023 Earnings Disappoint; Shares Fall
This article is republished with permission from Tip Ranks .
28-Feb-2024
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In key news on Singapore stocks, shares of City Developments Ltd., or CDL (SG:C09), fell in response to its disappointing earnings for 2023. The company saw a 75.3% decline in its earnings of S$317.3 million for the full year, down from S$1.29 billion in 2022. The earnings drop was mainly due to higher financing costs and the absence of any significant divestment gains like the ones in the previous year.
CDL stock is currently down by 2.7%, resulting in a year-to-date loss of 12%.
City Developments boasts a diverse portfolio of residential properties, hotels, office complexes, shopping malls, etc., spanning 28 countries worldwide.
2023 Results Snapshot
For the full year that ended on December 31, 2023, CDL reported record revenue of $4.94 billion, marking a 50% year-on-year increase. This growth was primarily driven by its property development segment, which accounted for 48% of total revenue in the second half and 57% in the full year.
The company's property development segment's revenue benefitted from the fully sold project Piermont Grand. This project obtained its temporary occupation permit (TOP) in the first half of 2023.
In 2023, CDL made significant investments, totalling S$2.4 billion, focusing on expanding its portfolio and strengthening its recurring income stream. It adopted this approach to maintain resilience amidst difficult macroeconomic conditions.
IsCity Developments a Good Buy Now?
According to TipRanks, C09 stock has received a Moderate Buy consensus rating, backed by two Buy recommendations. The CDL share price forecast stands at S$7.82, which shows 31.2% upside potential in the shares.
