CMA

CMA: 4Q13 net profit came in above consensus estimates, rising 17% y/y to $216.4m. Core net profit (less fair value gains and exceptional items) climbed 15% to an estimated $157m, helped by lower admin and finance expenses, and driven by a 10% gain in overall share of contribution from associates and jointly controlled entities. This was despite a lower top line of $103.7m (-9%) mainly attributable to lower leasing commission and project management fee from China as fewer malls opened in 2013 from a year ago, as well as reclassification of mall-related reimbursable staff cost. CMA’s key markets of S’pore, China and M’sia continued their good performances last year, recording increases in net property income and tenants’ sales and strong shopper traffic. CMA’s China malls grew the fastest with NPI increasing 13.1% and total tenants sales up 13.2%. Next year, management targets to open four new malls: two in China (CapitaMall SKY+ in Guangzhou and CapitaMall Tianfu in Chengdu), and two in India (in Hyderabad and Mangalore). The group has proposed a final div of 1.75 cts. lncluding interim div of same amount, total FY13 div is 3.5cts (+7.7% y/y), implying 2% yield, based on last close at $1.735. The stock trades at 0.94x P/B.