What is the news?

CMA reported a stronger set of quarterly results with revenue at $91.5mn, +30%y-y, mainly due to new contribution from Olinas Mall which was acquired in Jul 2012 and The Star Vista which was opened in Sept 2012, as well as higher management fees. Contributions from assoc. co. and JCE were also higher, mainly due to gain ($6.6mn) from warehousing of 2 malls to be sold to CMCDF III, better performance from CMT, ION Orchard, China Funds, Minhang Plaza and Hongkou Plaza. As a result, PATMI increased 9.6% y-y to $73.2mn. Excluding a reval gain in 1q12, PATMI would have been 103%y-y higher.

How do we view this?

We note that the efforts of acquisitions and new mall completions in the past two years have started to bear fruits, as noted from its operating income. Coming 2Q13, sales from Bedok Residences, which is 95% sold, could be recognized progressively, will further strengthen its earnings.

Investment Actions?

We keep our estimates unchanged and maintain its RNAV at $2.48 and fair value at $2.11. Maintain Neutral. We believe the improvement has been reflected in its current share price.

Source: PhillipCapital Research - 26 Apr 2013