Capitaland

Capitaland: Results in line with estimates1Q rev was $641.1m +4.8% yoy with net profit at $133.2m +31.3% yoy. Excluding revaluation and portfolio gains of $55m core net profit was a positive $78m. Overseas operations contributed 61% of total EBIT. Singapore contributed $52m approx 16% of total EBIT with sales of 57 units. Sg sales was driven by Bedok Residences with 39 units, d’Leedon sold a mere 8 units (below 60% sold). Co also gave guidance on Sky Habitat with 129 units sold from $1642-1747 psf. In China, co sold 189 units vs 400-500 units each in 1Q, 2Q, 3Q11. Co continues to retain Sg and China as key focus markets and expects longer term demand to remain healthy. New launches in various projects, eg The Interlace, d’Leedon and Sky Habitat are expected over the course of the year. Lease renewals at Raffles City projects in Sg, Shanghai and Beijing have witnessed upward revisions. Capitaland now trades at P/B of 0.84x Ratings as follows, JPM maintains Overweight with TP$3.40 UBS maintains Buy with TP$3.60 Deutsche maintains Hold with TP$3.18 MS maintains Underweight with TP$2.90