CapitaMalls Asia: Daiwa maintains Outperform rating on grp with $2.65 TP. House forecast grp to announce a net profit of $67m and rev of $58m for 4Q10. Add that CMA has delivered on its capital-recycling strategy, and has added about $1.8b of new developments in China, SG and Malaysia to its portfolio and divested about $500m of its assets over the past 12 mths….
Believe CMA is positioned to make further acquisitions in markets where there is competitive bidding (mainly in SG) and especially in markets which could see investor sentiment weaken in the future (primarily China)…..
Maintains SOTP-based six-month TP, as house believe that the market has more than priced in the effects of the austerity measures imposed in China to curb rising inflation and property speculation, noting that CMA has lost about $1.4bn, equivalent to 35% (from its past 12-month share-price peak of S$2.66) of its market capitalisation, despite rentals remaining resilient for its properties under management….
Note that at current price, CMA is trading currently at 1.2xP/B on 2011 BVPS forecast, at a discount vs peer Hang Lung’s 1.5x PB.
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