CapitaLand’s 4Q13 PATMI decreased 45.6% YoY to S$142.9m, mostly due to divestment losses from its 20% Australand stake, impairments from investments in China, India, Abu Dhabi and Australia and forex losses. FY13 PATMI cumulates to S$849.8m, which fell 9.5% short of our full year forecast, and we judge these results to be below our expectations and consensus. Excluding one-time items, however, operating PATMI for FY13 stands at S$527.7m, which is a respectable 42.9% increase. 4Q13 topline is S$1,085.1m, down 2.3% YoY mostly due to the deconsolidation of Australand and lower revenues from domestic development projects. Over FY13, we saw 1,260 residential units sold in Singapore, up significantly versus the 681 units sold in FY12. In China, residential sales were mostly flat at 3,009 units – still a healthy pace – which is a mild 4.8% dip versus FY12. Chinese township project sales increased 35.6%% to 4,679 units. A dividend of 8.0 S-cents per share was proposed. We would speak with management regarding these results and, in the meantime, maintain BUY with our fair value estimate of S$3.77 under review.

Source: OCBC Research - 19 Feb 2014