CMA

CMA: OCBC maintains Buy with $2.55 TP. House note that latest Chinese economic data-points has mostly been above view, painting a picture of modestly recovering fundamentals. Over the last mth, the Chinese PMI, trade and inflation figures have mostly beat expectations which increasingly establishes a base case for at least a 7.5% economic growth rate this year – the target set by Chinese authorities. House look forward to Chinese industrial production and retail sales reports today, which are expected to further add to signs of recovery. Believe these are key positives for CMA and reinforces the long-term outlook of its Chinese mall portfolio, which has continued to put up firm numbers year to date. 1H13 tenants sales at CMA’s Chinese malls grew at 9.5% YoY on a psf basis; excluding tier 1 cities, tenant sales grew by 11.0% YoY.