CII [O-PF +19.6%] - Gains from partial divestment of LGC drive reported earnings - Update
We maintain our OUTPERFORM rating. Large financial gains drove Q3 earnings for the company. CII’s earnings have historically fluctuated due to financial gains from restructurings into a holding company. However, these are immaterial to our sum-of-parts valuation. Our longer term view is driven by large contributions from CII’s BOT projects and high returns expected from its land lots in the Thu Thiem New Urban Area. Our rating also benefits from a stable 7% dividend yield.