Friday, July 27, 2012


CMA: 2Q12 results. Headline earnings at $232m, +41% yoy, +247% qoq, exceeded forecasts on revaluation and divestment gains. Excluding revaluation gains of $105m, and divestment gains of $89m, net profit was $38m, slightly below estimates, due to higher than expected finance costs. Notably, new malls in China have ramped up well, with new Shanghai malls achieving >5% yields on cost in the first year, and its Taiyanggong mall is expected to achieve a 6% yield on cost in 2013. operating trends in China remain positive with 12% growth in tenant sales, 11% growth in shopper traffic. Core earnings in China have risen 77% qoq to $16m. meanwhile, same store NPI continued to grow, rising 20% in china, and 4-5% in Spore and Msia. Nomura expects a strong, back-loaded 2H12, on the back of the opening of Star Vista in Spore and 6 other malls in China during the period. Mgt declared an interim div of 1.625 cts/sh. Also outlined a div policy of at least 20% net profit payout, with additional div possible from divestment gains. Nomura reiterates Buy, raises TP to $1.89 from $1.82, to reflect the higher valuation of CMA’s stakes in listed entities. Deutsche reiterates Buy with TP $1.89. says valuations look attractive at 1x P/B. StanChart maintains Outperform with TP $1.79.

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