Capitaland

Capitaland: Better than expected FY2010 results, Rev at $3.4b, +14.4%yoy and net profit $1.3b +20.9%yoy. 4Q rev at $1.1m +36.5%yoy, Net profit $522.0m -41.1%yoy. In 4Q revaluation gains were $94.9m due to properties in Sg, China and Australia, and divestment gains of $151.5m from co’s 58.1% stake in Raffles City Changning and $64.8m of 28 serviced residences from Ascott REIT…

Excluding the above one-off gains, net profit would be $210.8m. Full year rev increased due to higher recognition for 4 core mkts of Sg, China, Australia and Vietnam, and main projects were The Interlace, Latitude and The Wharf Residence in Singapore and The Vista and Mulberry Lane in Vietnam...

Outlook remains positive for both Sg and China despite policy curbs, co expects continued rev from all the 3 Sg projects and new launches include d’Leedon and condo project in Bedok Town Centre and various others in China. Expansion in Vietnam will continue with the affordable housing initiative. NAV per share of $3.33 translates to approx 1.05x P/B vs hist avg of 1.46x.