CapitaLand

CapitaLand:Maybank-KE recently visited a number of CapitaLand and CMA projects in Shanghai, Guangzhou and Shenzhen. Believes the group has put in place the necessary framework, and has a competitive edge over its competitors in China, particular with integrated developments. The house maintains its Buy rating and TP $4.10 for CapitaLand, as the group executes towards achieving a sustainable ROE of 8-12%. During the visit, Raffles City Changning in Shanghai and Raffles City Shenzhen provided prime examples of CapitaLand’s expertise in large scale integrated developments, while the Datansha site in Guangzhou showcased CapitaLand’s master planning abilities and paves the way for more similar government-to-business cooperation in future. Separately, CapitaLand has consolidated in China residential business under CapitaLand China. 90% of its landbank will be focused on the mass market segment, targeting first-time home buyers and upgraders, where end user demand continues to be underpinned by growing affluence and urbanization.