SINGAPORE (Jan 17): Frasers Property (FPL) – which gained just 3.68% last year – underperformed its peers City Developments (+42%), UOL Group (+37.5%) and CapitaLand (+26.2%), excluding dividends. Since the start of this year, CapitaLand is up a further 5%.

By all accounts, FPL is undervalued. At a closing price of $1.72 as at Jan 14, it is trading at a P/B of 0.67 times, lower than CDL’s one times price to book, CapitaLand’s 0.87 times and UOL’s 0.72 times.

Will 2020 and the rest of this decade belong to FPL? The developer ended its FY2019 ended Sept 30, 2019, on a sombre note. Revenue and PBIT decreased by 12% and 3% y-o-y $3.792 billion and $1.293 billion respectively. Net prof­it after tax fell 25.3% y-o-y to $560.3 million.

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