CDL’s share price sink 1.27% after Q1 profit more-than-doubled; China investment deal bites
CDL’s shares slumped S$0.11 to S$8.57 at around 2.30pm Singapore time on Wednesday.
Property developer City Developments Limited (CDL) posted a net profit that more-than-doubled for the first quarter ended March 31, at S$199.6 million compared to S$85.3 million a year ago, supported by strong profit margins for its development projects and a S$144.3 million pre-tax gain from the divestment of Manulife Centre.
Earnings per share for the quarter was at 22 Singapore cents, compared to 9.4 Singapore cents a year ago.
In a separate announcement, the group said it has entered into deals to invest 5.5 billion yuan in Chinese real estate developer Sincere Property Group. The near-term uncertainties over the United States-China tariff war and China’s ongoing economic slump sent the firm’s stock lower after the morning announcement.
CDL share price
CDL’s shares slumped 1.27% or S$0.11, to S$8.57 at around 2.30pm Singapore time on Wednesday.
The company’s shares had opened lower at S$8.64, compared to yesterday’s S$8.68. Year-to-date however, CDL’s shares have risen by 7%.
CDL earnings report highlights
Revenue for the quarter fell by 29.5% to S$746.2 million, from S$1.06 billion a year ago. The sales included revenue from The Criterion executive condominium, following its completion in February last year.
The group said its rental properties took the lead in the performance for the first quarter, contributing 68% in pre-tax profits primarily attributable to the divestment of Manulife Centre and contributions from recent acquisitions.
The group’s property development segment came in second in performance for the quarter, mainly supported by several of the group’s key local projects including Gramercy Park, New Futura, as well as overseas projects like Hong Leong City Center in Suzhou and the Hongqiao Royal Lake in Shanghai.
5.5 billion yuan investment in China property developer
The developer said it has entered into deals to invest 5.5 billion yuan in Chinese real estate developer Sincere Property Group. The investment which is CDL’s largest in China to-date, will comprise of a share subscription and a four-year interest-bearing loan.
The investment is expected to complete by the fourth quarter of this year. Once the deal is completed, CDL will attain a 24% equity stake in Sincere.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
