CMT

CMT: CLSA maintains Buy with TP$2.05 after visit to JCube which opened a wk ago. Mall is alr experienceing a strong crowd, partly due to Easter, despite some tenants still due for opening in a few wks. Business was brisk which might allay concerns on oversupply in Western region of Singapore. House believes that low unemployment and rising household income (6.7% CAGR since 2005) will support retail spending over the medium term. With annual tourist arrivals at record high of 13.2m, CLSA forecasts a 12% increase in 2012 and 8.2 CAGR to 2015 reaching 18.1m. Raises avg rent assumption for JCube to ~$12 from $11 psf/mth.