CMA

CMA: DBSV maintains Buy with $2.08 TP on back of developer acquiring 2 projects in Japan and Qingdao. House note that with the latest purchases, CMA’ gearing is likely to move to a still very manageable 30% by year-end from 25% in 2Q12, with potential downside if the Qingdao development is injected into CMCDF III, leaving more headroom for capital reinvestment into new projects. The latest purchase is in line with the group’s strategy to expand its presence in China. With another seven malls expected to be operational by end 2012, grp is well positioned to tap the strong consumption trend in the country. House raised FY12 and FY13 numbers to factor in these latest acquisitions as well as 1H12 results. The stock is trading at a steep discount to RNAV of $2.60. TP of $2.08 is pegged at a 20% discount to RNAV. Continue to like CMA as a leader in the Asian retail real estate market offering compelling value.