CapitaLand

CapitaLand: Sales momentum in China remains firm, coming primarily from its Metropolis, Pinnacle, Paragon, Loft and iPark projects, and plans to have an additional 3500 units launch ready in 2013. Meanwhile, earnings are expected to be boosted by the TOP of 3000 units in 2013 (2077 in 2H13). The group stated that it has no immediate plans to spin off its Raffles City China assets, as the portfolio has not yet stabilized. In Singapore, sales momentum also improved, with 544 units sold ($1.3bn), up from 352 units in 4Q ($667m) dominated by D’Leedon following recent price cuts. Looking ahead, CapitaLand targets to launch Marine Pt and Bishan St 14 in 2H13. In Malaysia, the group stated that it views its recent Danga Bay acquisition (60-70% of GFA residential, 30-40% of GFA commercial) as an extension of its Singapore strategy, and believes that demand could be boosted by population migration in Malaysia to the Iskandar region, a return to Malaysia from Malaysian expats in Singapore, and finally, Singaporean investors and retirees. CapitaLand also did not rule out pursuing additional acquisitions in Iskandar. The group is still in the midst of its strategic review for Australand, and will need to balance the decrease in earnings with capital redeployment opportunities and shareholder returns. DB has a BUY rating, TP of $4.43;