Singapore Developer CDL Wins Analyst Upgrades as Earnings Jump

Broker Sentiment Shifts Upward

City Developments Limited drew fresh buy ratings from equity research teams after reporting net income of S$301.6 million for the six months ending June 2026, a 230.7% increase from the year-earlier period. Revenue climbed 61.1% to S$2.72 billion, according to the company's financial disclosure.

OCBC upgraded CDL to buy from hold, setting a fair value target of S$10.35. Andy Wong, senior equity research analyst at the bank, pointed to the stock's recent price decline as having improved the risk-reward profile. Analysts at PhillipCapital and other research desks assigned buy ratings with price targets spanning S$11.32 to S$12.11.

The share price jumped as much as 11% on the morning the results were released, reflecting immediate market approval of the financial performance.

Residential Sales Drive Growth

The earnings acceleration came primarily from the property development division, which benefited from strong demand in Singapore's private residential market. The city-state's housing sector has remained resilient despite higher interest rates, with new launches continuing to attract buyers.

CDL's hotel operations also returned to profitability, recording pre-tax income of S$42 million compared with a loss of S$84.4 million in the first half of 2025. The turnaround reflected both higher occupancy and a favorable foreign-exchange impact as the Singapore dollar strengthened against other currencies. Hotel revenue rose 6.4%, while revenue per available room increased 4.9% to S$161.90.

Strategic Review in Focus

Analysts are now watching for the outcome of CDL's strategic review, originally scheduled for June but now expected by the end of September. Sherman Kwek, group chief executive, said at an August briefing that the review will detail future growth strategy, capital allocation principles, and a roadmap for execution.

Darren Chan of PhillipCapital told local media that the review could accelerate asset recycling and reduce leverage, creating conditions for a valuation rerating. He also identified potential for CDL to expand its fund management arm, building a stream of recurring income alongside traditional development activity.

Sherman Kwek indicated that the company plans to increase asset sales in the second half, with legacy properties in Britain worth around S$800 million under consideration for disposal. The moves are part of an effort to lower debt and restore investor confidence following a public disagreement between Sherman and his father, Kwek Leng Beng, the company's executive chairman, in early 2025. The two have since reconciled, according to statements from the company.

Family Wealth and Sector Context

Kwek Leng Beng and his family were ranked second on Forbes' list of Singapore's wealthiest individuals in September 2025, with a combined net worth estimated at US$14.3 billion. The family controls CDL through Hong Leong Group, a diversified conglomerate with interests spanning property, hospitality, and financial services.

CDL's strong first-half performance mirrors broader momentum among Singapore's major developers. UOL Group reported a 23% rise in net profit to S$252.2 million, while CapitaLand Investment, majority-owned by state investor Temasek Holdings, posted a 14% gain.

The synchronized strength across the sector underscores the resilience of Singapore's property market, even as regional peers face headwinds from slower economic growth and tighter credit conditions. For CDL, the immediate challenge will be delivering on the strategic review and executing the planned asset sales, both of which will shape the company's trajectory through the rest of the year.