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More solid earnings recovery expected for the rest of the year, analysts maintain positive on CDL

Khairani Afifi Noordin
Khairani Afifi Noordin5/26/2022 10:42 AM GMT+08  • 2 min read
More solid earnings recovery expected for the rest of the year, analysts maintain positive on CDL
CDL's hospitality segment should continue to trade well for the rest of 2022 with the rebound in global travel.
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Analysts at RHB Group Research and CGS-CIMB Research have kept their “buy” and “add” calls on City Developments (CDL), following the company’s positive recovery across all segments, with strong tailwinds from economic reopening.

RHB analyst Vijay Natarajan says a more solid earnings recovery is expected for the rest of the year from a rebound in the hospitality segment and strong sales momentum in its residential projects. “Despite macroeconomic uncertainty, the group remains a deep value play trading at more than 50% discount to its RNAV, which in our view, limits downside,” he adds.

Meanwhile, CGS-CIMB analyst Lock Mun Yee highlights that CDL continued to unlock value from its potfolio. In addition to Millenium Hilton Seoul and Tanglin Shopping Centre, the company is also unlocking value from the collective sale of Golden Mile Complex for a total of $700 million where it has a 6.3% share of total share value and 34.8% share of Strata Area of the property.

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