not vested
RESEARCH ALERT-CLSA upgrades CapitaMalls Asia to buy
Singapore, Jan 13 (Reuters) - CLSA Asia-Pacific Markets has upgraded Singapore shopping mall developer, CapitaMalls Asia Ltd (CMA) , to buy from underperform and raised its target price to S$1.64 from S$1.44.
STATEMENT: CLSA said it believes that concerns of an over-leveraged balance sheet have been exaggerated as CMA is in line with its Chinese peers. China accounts for around 48 percent of CMA's gross asset value.
CLSA also said that it saw deep value in CMA's China mall business. At the company's current share price, CMA's China mall business implied 3,305 yuan ($520) per square metre or S$0.34 per share, CLSA said, which depicts a deep discount for the asset.
CMA opened three malls in China in 2011 and aims to open seven new malls in the country this year. The ramp-up of new malls may narrow its net asset value discount, CLSA said, adding that acquisitions in 2012 are likely to be more yield-accretive.
At 0241 GMT, CMA shares were up 2.5 percent at S$1.245. The stock fell approximately 42 percent last year.($1 = 6.3178 Chinese yuan)
Source: Reuters