Saturday, October 26, 2013

CapitaMalls Malaysia Trust - Results In Line; Awaiting New Catalysts (MKE)

CapitaMalls Malaysia Trust -
Buy (unchanged)
Share price: MYR1.55
Target price: MYR1.85 (from MYR1.91)

Results In Line; Awaiting New Catalysts
Maintain HOLD. CMMT’s 9M13 core net profit of MYR109.9m (+6.3% YoY) was in line at 77% of our full-year forecast and 73% of consensus. No DPU was declared due to CMMT’s bi-annual distribution policy. Elsewhere, the impact of the potential acquisition of the Tropicana City mall and office tower (TCMO) hinges strongly on the pricing. We maintain our FY13/14/15 earnings forecasts but shave our DCF-based target price to MYR1.85 (-3%) to account for a higher beta of 0.76 (from 0.65) given the more volatile bond market since Jun 2013.


Results tracking expectations. CMMT’s 3Q13 core net profit was MYR37.7m (+9% YoY, +3.6% QoQ), lifting 9M13 earnings to MYR109.9m (+6.3% YoY). The 6.3% YoY growth in 9M earnings was driven by positive rental reversions at its existing assets. Average rental rates rose by 6.5% on renewed leases while the average occupancy rate was stable at 98.8% in 3Q13.

Improvement works and new initiatives. CMMT incurred c.MYR39.4m in capex on its existing assets in 9M13. Refurbishment works at the Sungei Wang Plaza are in progress and are slated to be completed by year end, while The Mines’ storm water rectification works, Gurney Plaza’s fourth-floor reconfiguration works and East Coast Mall’s asset enhancement initiatives (including conversion of some car park bays into retail spaces) are still in progress.

Buying new assets? CMMT received a Letter of Intent (LOI) from Tropicana City S/B at the end of August to explore the potential acquisition of TCMO, a 4-storey shopping mall with car park bays and a 12-storey office tower. Under the terms of the LOI, CMMT has been granted an exclusive period for due diligence. No indicative pricing has been revealed but it could be around MYR500m-600m, we understand.

TCMO – a yield-enhancing acquisition? We are not surprised by the potential asset injection as CMMT has been actively looking for new assets given the limited assets in its sponsor’s portfolio. However, the potential acquisition of the Tropicana office tower would be a shift in strategy to some extent, as CMMT’s focus, track record and expertise have historically all been skewed towards retail properties.



Source/Extract/Excerpts/来源/转贴/摘录: MKE-Research,
Publish date: 25/10/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock