Monday, November 26, 2012
CapitaLand: SCB raise RNAV for CapitaLand (CAPL) by 12% on a more positive view on CapitaMalls Asia (CMA). Potential catalysts could also come from new redevelopment projects in Singapore or commercial investments in China. House continue to expect strong residential profits from SG to support EPS CAGR of 25% in 2012-15E. Catalysts include new projects in Singapore and China, new leadership style. Channel checks indicate that Capitaland continues to seek to invest in Singapore, particularly the redevelopment of older commercial assets for commercial or residential uses for superior returns. Past examples include CapitaGreen and Ascott Raffles Place. CAPL could also potentially double its assets in China from SGD 13b currently. In Oct12, the co announced that four Chinese banks had granted its China businesses credit limit allocations of up to $10b in aggregate.