Capitaland

Capitaland: (The Edge) CFO Explains why co. is narrowing its business focus and canvassing investors. Intends to narrow exposure to a number of cities where it can really make a difference. Currently 92% of grp’s portfolio is across 12 cities in China and grp intends to reduce it to 10. Add that key to seeing good projects through to tie up with good, long term financial backers and the importance of controlling tenant mix. Going forward sees China, Singapore and Australia as its key mkts, which will account of the bulk of its assets and growth, complemented by a further stable but slower growing mkts of Msia, Vietnam andEU and 2 opportunistics mkts of Japan and India. Add that Capitaland is not in need of another rights issue despite the bewing crisis. Maybank Kim Eng estimates Capitaland RNAV at $5.03/share. Assuming a 20% discount, that would still be $4.00, a potential upside of 66%.