CAPL’s 4Q14 PATMI increased 187.0% YoY to S$409.4m due to divestment gains from office strata units at Westgate Tower, higher contributions and revaluation gains from the shopping mall and serviced residence businesses, partially offset by lower profits from China as fewer units were handed over over the quarter and lower portfolio losses. Full year PATMI and operating profit are reported to be S$1,160.8m and S$705.3m, up 38.2% and 40% respectively, which are within our expectations.

Full year revenue increased 11.8% to S$3,924.6m again due to Westgate, improved performances from investment assets and development projects in Vietnam, offset by poorer numbers from developments in China. FY14 same-mall NPI for the group’s retail business increased 2.5% and 19.9% in Singapore and China, respectively, with Chinese shopper traffic also growing 4.8% over the period. Maintain BUY but our FV estimate of S$3.79 is under review.

Source: OCBC Research - 17 Feb 2015