CapitaLand: Deutsche hosted grp in its Access Conference and highlight key updates. Residential sales slowed in 1Q11, with 167 units sold in SG ($306m) and 437 in China (Rmb0.95bn), -45% yoy. However expects underlying demand to remain firm. In China, grp plans to release 4,000 new units subjected to regulatory approval, while ASPs have crept up 3-5% vs last qtr……
Mgt believes policy risk in China remains a significant overhang but expect govt to focus on mass and social housing segments. Add that grp’s balance sheet remains strong, with cash position of $7.2b and net gearing of 0.18x and would be comfortable with gearing of 0.4x-0.5x. Grp has outlined aggressive plans for 2011, with target to recycle $6b.….
In SG, mgt has set target of becoming top-three developer, with mkt share of 15%, and plans to replenish land banks in strategic locations near MRTs and city fringes. Also set target of growing China into 35-45% of its business and plans to secure pipeline of 15,000 affordable housing units via CapitaValue Homes. Deutsche maintains Buy Call with $4.22 TP.
No comments:
Post a Comment