Tuesday, December 3, 2013

UOBKH 2014 Top BUYs – Big Caps- CapitaLand

CapitaLand
Share Price S$3.03
Target Price S$3.83

BACKGROUND
CapitaLand is one of the largest listed real estate companies in Asia with an asset value of S$36.4b (excluding treasury cash) as at Sep 13. Its core businesses in real estate, hospitality and real estate financial services focus on gateway cities in Asia- Pacific, Europe and the Middle East. The company’s real estate and hospitality portfolio spans more than 90 cities in over 20 countries. Listed subsidiaries and associates include CapitaMalls Asia, The Ascott Group, Australand, CapitaMall Trust, CapitaCommercial Trust, Ascott Residence Trust, CapitaRetail China Trust and Quill Capita Trust.


OUTLOOK/RECOMMENDATION
• Working towards 8-12% ROE target. Immediately after taking over as President and Group CEO, Mr Lim Ming Yan realigned the group into four main businesses: CapitaLand Singapore, CapitaLand China, CapitaMalls Asia and The Ascott Ltd. The move is part of CapitaLand’s strategy to simplify its organisational structure and sharpen its focus on key growth markets. CapitaLand has set an 8-12% ROE target focusing on two core markets, Singapore and China, with China to form 50% of exposure, up from 39% today. The emphasis is on its core strength in integrated/mixed developments, maintaining two-thirds investment assets and one-third assets under development.

• Partially monetising Australand stake. CapitaLand sold a 20% stake in Australand following the secondary placement of 115.66m shares at A$3.685/share. Key reasons given for the divestment include a 50% increase in free float, which will improve Australand’s ranking in key indices, and to broaden the institutional shareholder base for Australand. The proceeds of S$485.3m will be redeployed towards new opportunities in Singapore and China. CapitaLand will de-consolidate Australand as a subsidiary following the reduction in its stake to 39.1% from 59.1% previously. There is minimal impact to our RNAV valuations ( < 0.5%).

• Management guided that Singapore residential sales will be moderated by the cumulative impact of various property cooling measures. However, management remains positive on long-term prospects in the Singapore property market, supported by a resilient economy and policies to support population growth. CapitaLand plans to focus on investing in well-located sites to build up its pipeline of residential and commercial developments.

 • Positive outlook for China. The outlook for the Chinese economy is stabilising, and with structural changes in the economy, growth will remain stable and sustainable. China shopping malls and CapitaLand’s Raffles City portfolio will benefit from healthy consumer demand and strong retail sales. Raffles City Chengdu and Ningbo (completed in 2012) are doing well, with retail space largely committed, while office leasing is about 50% committed.

• Maintain BUY, target price S$4.35, pegged at a 15% discount to its RNAV of S$5.11/share. The stock is currently trading at a steep 39% discount to its RNAV and is at an attractive 0.8x 2013F P/B.




Source/Extract/Excerpts/来源/转贴/摘录: UOBKH-Research,
Publish date: 28/11/13

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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
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“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!
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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
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