InvestIdeas

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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

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RESEARCH ALERT-Kim Eng starts CapitaMalls Asia as buy

SINGAPORE, Feb 8 (Reuters) - Kim Eng Securities began coverage of Singapore's CapitaMalls Asia Ltd , which develops shopping malls, with a buy rating and set a target price of S$1.92.

By 0240 GMT, CapitaMalls Asia shares were up 1.8 percent at S$1.42 and have gained about 26 percent so far this year.

STATEMENT: CapitaMalls' shares have fallen 34 percent from its initial public offering price of S$2.12, said Kim Eng, highlighting that its poor performance was due to its exposure to China and the lack of significant income streams from the country.

However, the brokerage said it believes CapitaMalls has the expertise to succeed in China over the medium to long term, and estimates that core earnings contributions from the country will grow to 54 percent in 2016, from 7 percent in 2010.

Kim Eng said it expects CapitaMalls Asia's earnings to grow by 18 percent on average each year over the next five years as income from its shopping malls start to stabilise.

Source: Reuters

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CAPITAMALLS ASIA LTD - Shopping centre developer CapitaMalls Asia <6813.HK> said more than half of its malls in China would be up and running in 2012, marking an "inflection point" for the company, which has been investing heavily to develop the projects.

The company reported on Friday after-tax profit hit S$456 million ($365.5 million)for the fiscal 2011 year, a rise of 8.1 percent compared with the previous year.


Source: Reuters

CapitaMalls Asia , this ticker today go mad up 12 cts.... to $1.615.
can she climb up again tomolo, any news?

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CapitaMalls Asia Ltd , which owns shopping malls, may be in focus after it said its first quarter net profit rose 36 percent to S$66.8 million, helped by revenue generated from new malls.

Source: Reuters

CapitaMalls Asia: Mall acquisition in South Beijing

CapitaMalls Asia (CMA) reported 1Q12 PATMI of S$66.8m (1.7 S-cents per share) which is 36.1% higher YoY mainly due to revaluation gains (S$30.7m) from three malls in Japan and contributions from Queensbay Mall, partially offset by the absence of contributions from The Orchard Residences and retail bonds issuance costs.

Accounting for revaluation gains, we judge 1Q12 results to be somewhat below consensus and our expectations, making up only 16% of our FY12 forecast. 1Q12 topline came in at S$70.9m – 41.2% higher YoY and more broadly in line with expectations.

Management also announced that it would acquire from Poly Xing Real Estate Development a site for a shopping mall in Daxing District in the south of Beijing.

The total development cost is expected to be RMB2,343m (S$469.2m) or ~RMB19,190 psm GFA. We will discuss these developments further with management this morning and, in the meantime, put our BUY rating and fair value of S$1.79 UNDER REVIEW.

Source: OCBC

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CapitaMalls Asia said its second-quarter net profit rose 40.7 percent to S$232 million from a year earlier, helped by strong performance in its China, Singapore and Malaysia malls.


Source: Reuters

Chinese retail conditions remain healthy

- Core PATMI below view
- Chinese retail conditions still healthy
- FV rises to S$1.85 from valuations of listed holdings

CMA announced 2Q12 PATMI of S$232.0m - up 40.7% YoY mostly due to a S$64.6m divestment gain (net-tax), offset partially by lower revaluation gains.

Accounting for one-time items, we estimate 2Q12 core PATMI at S$39.0m which is somewhat below view due to a slower than expected rental income ramp-up in China.

Management also declared an interim dividend of 1.625 S-cents, and a formal dividend policy to pay out at least 20% of annual PATMI.

1H12 shopper traffic and tenant sales (psf) in CMA’s Chinese malls were up 10.7% and 11.6% YoY respectively, underscoring still healthy retail conditions.

We pare our FY12 core PATMI estimate, however, by 16% to account for softer income growth from China.

Despite this, our fair value estimate rises to S$1.85 (10% RNAV discount) versus S$1.79 previously, mostly due to stronger valuations for listed holdings. We believe CMA’s valuation appears undemanding at this juncture. Maintain BUY.

Source: OCBC

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More capex build-up

UNDERPERFORM - Maintained
Share Price S$1.62
Tgt. S$1.47

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CMA announced two acquisition deals: a greenfield project in Qingdao, China, and Olinas Mall in Tokyo, Japan.

Recycling of these assets could lift future RNAV.

Operationally, upside in NPI yields appears more muted.

Meanwhile, capex continues to build up.

We lift our FY12-14 core EPS estimates for income from Olinas Mall. Our target price (still at 25% discount to RNAV) remains unchanged as we view impact of this event on share price as net neutral.

Maintain Underperform on valuations. Switch to CapLand.


Source: CIMB

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China to contribute 31% of core EBIT by FY13F.

Despite concerns of an economic slowdown, CMA’s malls in China still enjoyed shopper traffic and tenant sales growths of > 10% YoY.

For the rest of the year, the Group will be ushering in six more malls in China, including RC Chengdu which was launched yesterday. The Star Vista in Singapore will also officially open this month with many new-to-market names.

Maintain BUY. CMA remains our top pick amongst developers, with a potential upside of 27% to our target price of SGD2.09.

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