CMA

CMA: Announced 4Q11 results, which was boosted largely by revaluation gains of $177m. Excluding revaluation gains, core net profit would have missed expectations at $28.4m.

Overall, rev at $66.3m, +20% yoy and flat qoq, while net profit at $205.4m, -39.9% yoy and +207% qoq. YoY drop in net profit was largely due from the restated net profit of 4Q10, baring which, net profit would have been +42.6%. Result brings FY11 Rev at $456.0m -18.7% yoy and net profit to $456m, -15.7% yoy, with revaluation gains at $320.3m, +146.8% yoy.

Grp note that underlying operating trends of key mkts in SG, China and Msia continue to perform well, registering increases NPI and tenants’sales last year. Performance of China malls was the strongest, with NPI growth of 20.7%, while Tenants’ sales in China malls also increased by 13.2% yoy, and see strong potential for the shopping mall sector in China.

Add that 2012 will be an inflection point for CMA, with grp having completed 33% of China NAV, and expects positive contributions from the malls. Grp also aims to open nine malls this yr - seven in China and two in Singapore.

We note that overall, grp’s fundamentals remain strong, with net gearing at 3.9% and an avg debt to maturity of 3.37yrs, while at current price, grp trades at a mere 0.93x P/b vs peers simple average of 1.7x P/B. Mgt has declared a dividend of 1.5c per share, bringing Fy11 div to 3c/share or 2% yield.

Citi maintains Buy with $1.88 TP
Daiwa has O/p Call with $1.65 TP.
DBSV maintains Buy with $2.03 TP.
Deutsche maintains Buy with $1.62 TP
Kim Eng maintains Buy with $1.92 TP
OCBC maintains Buy with $1.49 TP