1H21: Glimmers Of Light At The End Of The Tunnel

A strong revenue performance from CDL’s property development arm was not able to offset continued weakness in its hotel operations, the only segment that made a pre-tax loss. The company disclosed that if fair value gains were included, its RNAV would increase to S$14.22. We adjust our earnings downwards to factor in less bullish assumptions for the hotel business but maintain our BUY recommendation as we believe that we are past trough earnings. Target price: S$8.50.