City Developments Ltd

-4.43%

2. Economic downturn risk: An economic downturn or recession could result in a decrease in demand for properties, leading to lower sales and revenue for CDL. This could also affect the company's ability to secure financing for new projects and result in a decline in asset values.

3. Regulatory risk: As a real estate development company, CDL is subject to various regulations, policies, and laws, including zoning, building codes, and environmental regulations. Any changes in these regulations or an increase in compliance costs could adversely impact the company's operations and financial performance.

4. Currency exchange risk: CDL has a global presence and is exposed to currency exchange rate fluctuations. Any significant changes in these rates could affect the company's profitability, especially if there is a sharp weakening of the Singapore dollar against major currencies.

5. Competition risk: The real estate market is highly competitive, and CDL competes with both local and international developers for land, financing, and buyers. Increased competition could lead to a decline in sales and profitability for the company.

6. Debt risk: CDL has a significant level of debt to fund its real estate projects. Any increase in interest rates or a decrease in cash flow could result in a higher cost of borrowing and affect the company's ability to meet its debt obligations.

7. Concentration risk: The company's revenues are highly concentrated in its home market, Singapore. Any adverse economic, regulatory, or political events in the country could significantly impact the company's financial performance.

8. Environmental risk: As a property developer, CDL is exposed to environmental risks, such as pollution and natural disasters. These risks could result in additional costs for the company or damage to its properties, affecting its financial performance.

9. Reputation risk: CDL's reputation could be damaged by any negative publicity, such as issues with project quality, customer complaints, or ethical practices. This could lead to a decline in sales and erosion of trust among investors and customers.

10. Succession risk: CDL's performance is closely tied to its founder and principal shareholder, Kwek Leng Beng. Any potential changes in leadership or succession planning could impact the company's operations and strategic direction, potentially leading to a decline in shareholder value.