Shares of City Developments fell as much as 2.7% to a three-week low after it reported a slide in second-quarter net profit and analysts advised investors to take profit on the property developer.
By 3:14 p.m., CityDev shares were down 2.5% at $11.53, with 1.3 million shares traded, 1.5 times its average daily volume over the last few sessions.
CityDev said on Tuesday its second-quarter net profit plunged 37.7% to $137.7 million from a year ago, partly due to the lack of one-off divestment gains.
DBS Vickers downgraded CityDev to fully valued and Maybank Kim Eng cut its rating to sell from hold, citing high valuations.
CityDev shares have gained about 30% since the start of the year, outperforming the Straits Times Index's 15% gain.
“With management now adopting a markedly cautious outlook, current valuations appear rich,” said Maybank, adding that CityDev is trading at 0.93 times its restated net asset value, above its 5-year mean of 0.84 times.
It also noted that CityDev is likely to see fewer launches in the second half of the year and slower business for its hotel arm Millennium & Copthorne.
However, it raised its target price to $10.30 from $9.45, factoring in a smaller discount of 20% to its RNAV.
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