Singapore Stock Market News

CapitaLand - Operational pick-up in progress

StockFanatic
Publish date: Mon, 29 Apr 2013, 05:34 PM
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CapitaLand's 1Q13 core earnings jumped 1.3x yoy. Incentive schemes have helped move inventory in Singapore, while units were handed over in China. More will be delivered in 2H12, with strong sell-through rates reported in 1Q13 pointing to stronger operational momentum.

As such, we deem 1Q13 core earnings in line at 20% of our full year and 18% of consensus. We tweak our FY13-15 core EPS estimates but maintain our target price, still based on a 15% discount to RNAV. Stock catalysts are expected from an earnings recovery in FY13 and corporate restructuring initiatives. Outperform maintained.
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