Wednesday, February 26, 2014

CapitaLand: Impacted by one-offs (DBSV)

STI : 3,088.79
BUY S$2.91
Price Target : 12-month S$ 3.90 (Prev S$ 3.93)
Impacted by one-offs

•Results dragged by impairments and one-off losses
•Focus on driving operational performance should provide a stronger growth platform in the longer run
•Maintain Buy, TP S$3.90

Cleaning up activities. Capitaland’s results were in line with our expectations but slightly below street concensus. 4Q revenue was 2% y-o-y lower at S$1085.1m, while reported net profit dropped 46% to S$142.9m. However, stripping one-offs such as impairments, losses from partial divestment of Australand stake and repurchase of CBs, and revaluations, operating PATMI would have been S$190.7m, up 72% y-o-y. For the full year, operating PATMI was up 42% to S$527.7m. The group has proposed a DPS of 8Scts, up from 7Scts last FY.

Focus on delivering operational performance.Highlights of FY13 performance include higher residential volume sales in Singapore, where 1260 units were sold, valued at S$2.44bn, as well as the handover and recognition of profits from 8365 units in China with a sales value of Rmb11.2bn.Other units such as CMA and Ascott also performed better.

Our View
Deepening presence in core Singapore and China. Going forward, the group would continue to emphasise on growing operational profitability and strategy execution through active capital management and improving capital productivity across its 4 core business units. It would continue to focus in its core markets of Singapore and China, particularly on integrated developments. In Singapore, it has slated to launch new developments in Marine Parade and a landed project at Coronation Road as well as the unsold units from earlier projects. It also has an unsold inventory of 3200 units and another 14,000 homes in China that are ready for launch.

Strong balance sheet. Apart from the above, plans to manage finance cost, currently at c.4%, as well as recycling mature non-core assets are on the cards. With the paring down of its stake in Australand and subsequent deconsolidation, the group’s gearing stands at 34% with an average debt maturity of 3.6 years. This puts the group in a strong position to look for new investment opportunities, especially in its core markets.

Maintain Buy. The stock is currently trading at a steep 47% discount to its RNAV of S$5.57. Our TP of S$3.90, premised on a 30% discount to asset backing, offers significant 32% upside. Maintain Buy.

Source/Extract/Excerpts/来源/转贴/摘录: DBSV-Research,
Publish date: 20/02/14

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)

乔治·索罗斯(George Soros)



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,
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock