Singapore Stock Market News

CapitaMalls Asia - More improvements

StockFanatic
Publish date: Wed, 24 Jul 2013, 11:57 AM
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We see many positives in CMA's 2Q13 result:

1) operating margins continue to improve,

2) rents achieved at its existing and new malls were firm and

3) NPI yields on costs for its China malls continue to rise.

We expect further operational improvements to drive its share price.

2Q13 core EPS was in line with expectations at 28% of our full-year estimate (1H13 at 53%) and 29% of consensus. We update our model and adjust our FY13-15 core EPS by -6%/+4%. We raise our target price (10% RNAV discount) on higher rents and capital values for its SG and China malls. Maintain Outperform.
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