CapitaMalls Asia

[helios]

Its CEO said on TV that it cost some $200m to $250m to build a mall in China. They have so many in the pipeline and these will not yield ROE until some 2 to 3 years down the road. Wouldn't I have plenty of time to pick it up?

Yup, i saw that statement on Sunday's MoneyMind too ... ...

[winston]

Singapore's CapitaMalls shares up 8.5 pct on debut

SINGAPORE, Nov 25 (Reuters) - Shares of CapitaMalls Asia opened 8.5 percent higher on Wednesday, boosted by strong demand from investors keen on gaining exposure to China's fast-growing consumer market.

At 0101 GMT, CapitaMalls was traded at S$2.28 compared with its initial public offering price of S$2.12 a share. It opened at S$2.30.

The IPO of CapitaLand's malls unit was 1.7 times oversubscribed, the company said late on Tuesday.

CapitaMalls is one of Asia's largest shopping mall operators with 86 properties in the region, including 50 in China. The firm also manages several property funds, including Singapore-listed CapitaMall Trust and CapitaRetail China Trust .

CapitaLand, Southeast Asia's biggest developer, sold about one-third of its shopping mall unit, raising S$2.8 billion ($2.02 billion) in Singapore's biggest IPO since SingTel listed in 1993.

CapitaLand, which is 40 percent held by Singapore state investor Temasek [TEM.UL], plans to use the funds raised to seek opportunities in Vietnam and expand its Ascott serviced residences business. The firm may also pay a special dividend.

Source: Reuters

[winston]

Not vested. From Kim Eng:-

CapitaMalls Asia: Malls and more (IPO price S$2.12\UNRATED)
Brandon Lee (6232 3891, [email protected])
Jonathan Ng (6232 3893, [email protected])

Valuations undemanding for CMA. CMA’s listing on 25 Nov 09 signifies the birth of Asia’s largest retail mall developer/manager. Aside from replicating CapitaLand’s well-honed capital recycling model, CMA is a beneficiary of Asia’s unparalled consumer growth story, particularly China. At 1.55x P/B, IPO price of S$2.12 appears undemanding, vs. our valuation range of S$2.42 - 3.01.

Birth of pan-Asian retail behemoth. With a retail portfolio of 86 assets (66.5m sqf in GFA) across five countries and 48 cities, CapitaMalls Asia offers the best proxy to Asia’s significant economic and consumer growth story. CMA’s unique integrated retail mall business model combines its peerless mall development and management skills, with a proven asset and fund management expertise. This should add a new dimension to investors’ stock selection.

China to spearhead growth, Singapore as pivot. We expect China to drive CMA’s growth, given that it makes up 65% of CMA’s portfolio in terms of GFA.

We believe this can be achieved via:-
(1) gains from divestment of malls with stabilised income and
(2) organic rental growth due to reasonable upside potential as evidenced by NPI yields of 5.7% vs. targeted 7 -9%.

Stabilised income from Singapore’s malls should provide solid support.
Valuation range of S$2.42 - 3.01 based on 1.2 - 1.3x SOTP of S$2.01 - 2.32. Our bottom-up SOTP analysis has engendered a valuation range for CMA’s business quivalent to 1.8 - 2.2x Sep-09 book value. This is between 14 - 42% above its IPO price of S$2.12.

Our RNAV estimate is based on the market value of its listed entities, a 14 - 20x P/E multiple for its fund/asset management business and forecast capital growth for Singapore, Malaysia and China malls.

Valuation in-line with global peers. Our P/NAV is within the valuation range of regional retail property companies. We set out in Figure 3 some listed comparables, i.e. Hang Lung (HK), Westfield (AUS), Simon Property Group (US), Lend Lease (AUS) and Central Pattana (THAI).

The weighted P/NAV of these comparables works out to 2.5x. In contrast, SG retail REITs like CMT, CRCT, FCT and SGREIT trade at weighted average of parity to their NAVs.

[winston]

Not vested. From CIMB:-

CapitaMalls Asia Ltd - Unleashing its retail mall franchise

We initiate coverage on CMA with Outperform and a target price set on par with our RNAV estimate of S$2.77. This implies 31% upside from its IPO price of S$2.12. The IPO has, in our view, unleashed a pan-Asia retail mall behemoth with strong debt and capital market capacity to execute asset recycling.

In the past, parent CapLand’s success with this model has typically led to its share-price outperformance. CMA’s retail mall operations in Singapore are second to none. If CMA can replicate its success in China, we believe further upside to RNAV is possible in the longer term. We expect stock catalysts from potential divestment gains and asset revaluations in China when yields start to compress.

Risks, on the other hand, could stem from a longer-than-expected gestation period for its immature assets and volatility in debt and capital markets.

[LenaHuat]

This ticker moved up on speculation that it will be in the STI by 1Q 2010

[winston]

Not vested. From DBS:-

CapitaMall Asia reported FY09 net profit of $388m, up 243.5% yoy on a 12% rise in revenue to $205m and 74% jump in EBIT to $300m.

Underpinning the strong showing is a combination of progressive billings from the Orchard Residences project, better operating results of existing malls and opening of 11 new malls during the year.

In terms of outlook, with the improved economic outlook, CMA will accelerate the development of the new malls and pursue selective acquisition opportunities.

[winston]

Not vested. From DMG:-

CapitaMalls Asia: 4Q09 Results (SGXNET)

The news: CapitaMalls Asia (CMA) registered a YoY improvement in 4Q09 PATMI to S$169.9m (4Q08 net loss: S$7.0m), helped by progressive revenue recognition from 50%-owned The Orchard Residences, revaluation gains and improved performance from its three retail malls in Malaysia.

Stripping away revaluation items, 4Q09 underlying PATMI would have come in at S$124.6m. FY09 PATMI of S$388.1m slightly exceeded our expectations and consensus. CMA’s three key geographies – Singapore, China and Malaysia contributed 81%, 16% and 10% respectively of FY09 EBIT.

Our thoughts: Looking ahead, management will speed up the development of new malls, mainly the six in China which are expected to open this year. With a net cash position at present, CMA has ample debt headroom to pursue selective acquisitions.

We expect earnings to remain resilient going forward, on the back of
(1) Asia’s robust growth outlook,
(2) strong retail sales momentum evidenced in China and Singapore recently and
(3) improving labour markets.

We do not have a rating on the company.

[winston]

Not vested.

CAPITALMALLS ASIA - CapitaMalls Asia, a unit of Southeast Asia's biggest developer CapitaLand , said on Tuesday it would sell Clarke Quay to CapitaMall Trust , in which CapitaMalls owns about 30 percent, for S$268 million ($189 million).

Source: Reuters

[millionairemind]

Looks like a nice base with heavy accumulation today

[winston]

Thanks MM for bringing this one to my attention. It has been on my watchlist for a while but when it jumped to 2.70, I took it off my watch-list.

Vested now with a small position to follow their story