CMA

CMA: SCB raises TP to $2.60 from $2.21. House expect CAM to move back to a divestment phase. Believe the “inflection point” in CMA’s China earnings has been priced in current share price level and now expect CMA to go back into divestment mode for the next several years, especially in China. House think this will surprise the market., citing a $300-500m p.a. asset sales possible in China. CMA’2006 and 2007 vintage malls have begun to hit double-digit yields on cost, and house identify $350m of divestment candidates in the next 12 mths and crystallise value and fund capital commitments. House raise FY12-16E core earnings estimates by 2-13% on China performance, and double expectations for annual revaluation gains. Lift 2013E RNAV/sh and price target by 23% each to $2.60 and $2.21 (0.85x RNAV), respectively. CMA is one of house top picks in the SG property space.