Capitaland

Capitaland: CLSA maintain its Conviction Buy on the counter, highlighting that latest datapoints from suggests China residential sales growth is accelerating with prices stabilizing on the back of mortgage loosening and return of upgraders. This should see better fundamentals in the tier 1 and 2 cities benefiting CapitaLand through its 26% GAV exposure to these two segments. In addition, expect asset divestments to drive higher ROEs this year. Bearing in mind these catalysts, valuations are undemanding trading at 40% against historical discount of 30%.