KDH [M-PF +6.5%] - Low-rise products to sustain earnings growth in 2017 - Update
We change our rating from O-PF to M-PF for KDH with total return of +6.5% given the stock price has rallied 16% YTD. 2016 net revenue skyrocketed 266.8% Y-o-Y mainly driven by hand-overs of Melosa Garden, Lucasta and The Venica, coupled with numerous project transfers. Diverse new launches in District 9 will drive contract sales value growth of +12.5% in 2017. Positive locked up pre-sales in 2016 cement 2017F earnings growth of +27.3%.