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OCBC raised its rating on CDL to “buy” from “hold” but slightly lowered its fair value target to S$10.35 (US$8.15) from S$10.40.

Andy Wong, a senior equity research analyst at OCBC, said CDL’s recent share price decline had made the stock more attractive, with investors likely to watch for the results of the company’s strategic review, as quoted by The Business Times.

Analysts at other lenders and research firms also rated the stock a “buy,” with target prices ranging from S$11.32 to S$12.11.

CDL earlier reported a 230.7% year-on-year surge in net profit to S$301.6 million (US$237.5 million) for the first six months of this year, as revenue climbed 61.1% to S$2.72 billion.

The strong growth was driven by the property development business, which benefited from robust demand in Singapore’s private residential market.

Its hotel segment also swung back into the black with a pre-tax profit of S$42 million, as against an S$84.4 million loss a year earlier, thanks to higher revenue and a net foreign-exchange gain from the Singapore dollar’s strengthening.

Hotel revenue increased by 6.4% while revenue per available room, a measure of hotel performance, climbed 4.9% to S$161.90.

CDL shares jumped as much as 11% the morning the results were released.

Analysts are also positive ahead of the outcome of CDL’s strategic review, which is expected by the end of September after being delayed from its original June target.

Sherman Kwek, CDL’s group CEO, said at a results briefing earlier this month that the review will outline the firm’s future growth strategy, capital allocation framework and implementation roadmap, as quoted by The Straits Times.

PhillipCapital analyst Darren Chan told BT that the review could create scope for a CDL rerating by speeding up asset recycling and deleveraging. He also sees an opportunity for the developer to expand its fund management business and build recurring income alongside its development activities.

Sherman also said at the briefing that CDL intends to step up asset disposals in the second half of this year, with the potential sale of around S$800 million worth of legacy assets in Britain.

The moves come as he seeks to lower the company’s debt burden and rebuild investor confidence following his early 2025 public feud with his father, Kwek Leng Beng, CDL’s executive chairman, according to Bloomberg. The pair has since agreed to put aside their differences.

Leng Beng and his family ranked second on Forbes’ list of Singapore’s richest people last September, with an estimated combined net worth of US$14.3 billion.

Besides CDL, other leading property developers in Singapore also posted strong results for the first half. UOL’s net profit rose 23% year-on-year to S$252.2 million while CapitaLand Investment, majority-owned by state investor Temasek Holdings, posted a 14% profit increase.