FY08 net profit down 55% yoy — Excluding fair-value gains, Allgreen’s FY08 net profit came in at $65.3m, down 55% yoy. There was actually a slight loss of $0.5m in 4Q08 net profit, partly attributed to a $24.6m provision for two of its residential land sites (likely River Valley & Handy Rd). Adding back the provisions, net profit for FY08 is about 90% of our full-year estimates and inline with consensus.

Development properties still major contributor — The development properties segment still contributed some 52% of Allgreen’s total revenue in FY08, despite revenue falling some 56% yoy from $421.2m to $185.9m. Properties that contributed to FY08 revenue include Cascadia, Pavilion Park, Cairnhill Residences and Blossoms @ Woodleigh. Both investment properties and hotels segment saw yoy improvements in revenues at the back of higher rentals and room rates.

Gearing remains at 0.45x — Gearing was unchanged from a quarter back but higher than the 0.3x recorded in Dec-07. The increase in net borrowings was largely due to overseas investment and purchase of development sites in Singapore.

Maintain Buy, limited downside — Stock has remained fairly resilient since the start of the year and has outperformed the STI by 13% YTD. We maintain our Buy (1L) rating on valuation grounds. Allgreen is now trading at a 66% discount to our 2009E RNAV and a 68% discount to its NAV of $1.41.