CMA

CMA: 3Q13 net profit inched up 4% y/y to $64.8m, coming in slightly above Bloomberg consensus forecast of $60. 9m, thanks to (1) a decrease in finance costs (arising from higher capitalization of finance costs in properties under devt, partially offset by additional finance costs from issuance of medium term notes in Aug ‘12), and (2)improvement in share of results from associates and jointly-controlled entities (higher contribution by CMT arising from a mall which resumed full operations after major asset enhancements, opening of new malls held by the China funds in China, and profit recognition for units sold in Bedok Residences). Revenue however, dipped 10% to $91.8m, on lower property management fee from China as fewer malls opened in 2013 compared to the previous year. Still, management remains confident that its key markets in Spore, China and Msia will perform well in 2013, on the back of sustained tenant sales growth. In China for instance, NPI of malls grew 12% y/y in 9M13, while total tenants sales on a same-mall basis increased 13.8%. Looking ahead in 4Q13, CMA targets to open two malls in Spore – Westgate and Bedok Mall – which are ~85% and nearly 100% leased, respectively. The group also continues to be on the lookout for good acquisition opportunities in its key mkts. At $2.05 last close, CMA trades at 1.15x P/B, 15.5x annualized 9M13 P/E.