CapitaLand

CapitaLand: CLSA weighs in on current developments. Having divested AustraLand and privatized CMA over the past 12 months, investor focus is on how quickly the group can deliver higher ROE to meet its targeted 8-12% over the next 3-5 years. CLSA thinks the target is achievable, demonstrated by recent strategy change for Singapore residential product and relatively prudent land biddings. In the near term, divestments of the mature mall assets in Singapore to CMT could be rerating catalyst. Acceleration to inject China malls to CRCT could also be rerating catalyst to drive higher ROEs for the group.