What is the news?

CMA reported its 4Q12 revenue of $113.6mn, an increase of 71% y-y, due mainly to the acquisition of Olinas Mall in Jul 2012 and higher management fees. Reval gain however was lower at $24.3mn vs the $133.4mn registered in the same period last year. PATMI fell 10% y-y to $184.8mn as a result. On the adjusted basis, PATMI increased by 80.5% yy to $51.3mn. For FY12, adj PATMI increased 103.6% to $276.3mn. A final dividend of S 1.625 cents is proposed which make the full year dividend to S 3.25 cents, in-line with our expectation.

How do we view this?

Overall the results were within our expectations. Bottom-line contributions from Singapore, China and Japan improved but marginally impacted by impairment losses from India assets. We expect the newly opened malls during 2012 to contribute meaningfully in FY13.

Investment Actions?

We roll over our RNAV estimates and update the valuations of properties. RNAV is raised from $2.27 to $2.48 and fair value is increased to $2.11 with the same 15% discount to RNAV ascribed. Given that the current share price has appreciated by ~15.2% since our last updates, and the limited upsides vs our fair value, we downgrade our recommendation from Accumulate to Neutral.

Source: PhillipCapital Research - 08 Feb 2013