Singapore Stock Market News

CapitaLand - Restructuring back on?

StockFanatic
Publish date: Thu, 21 Nov 2013, 04:29 PM
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We think the partial sale of ALZ could mark the resumption, albeit a gradual one, of CapLand's restructuring plans. ROE is unlikely to improve immediately but reallocating capital to its core markets is a good start, in our view.

We lower our FY13-15 core EPS by 2-8% to account for lower ALZ earnings but our target price (still based on a 20% discount to RNAV) rises due to higher ALZ equity value. Maintain Outperform with catalysts to come from more capital recycling and operational improvements.
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