From proceeds of divestments last year, Song and Khi estimate that CDL will declare a dividend of 23 cents per share, which is above consensus estimates of 17.3 cents.
Helped by stronger residential sales, they estimate that CDL will be back in the black with FY2025 earnings of $83.9 million and to further double to $200 million for FY2026.
"With interest tailwinds and non-core asset sales, we expect a narrowing of the discount to CDL’s RNAV and CDL to trade to 1x book value," state the analysts, who have estimated a FY2026 book value of $10.70 per share.
"We believe the desire to repair reputations and CIT’s share price should galvanise CIT to be more proactive in executing a monetisation and deleveraging plan," add Song and Khi, referring to the high-profile boardroom fight that has been put behind.
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CDL shares gained 3.22% as at 10.25 am to change hands at $8.66. It is up 67.5% in the past 12 months.
