Tuesday, May 31, 2011


CapitaLand: Acquire65% stake in Quoc Cuong Sai Gon (QCSG) Vietnam for a cash consideration of Vnd121.225b ($7.3m). QCSG plans to develop the land into approximately 800 value homes. Acquisition not expected to have any material impact on NTA or EPS for FY11. We note however that acquisition could potentially see possible further expansion into Vietnam, as grp diversifies rev stream from SG and China, both of which faces policy risks, particularly for the residential sector……

Separately, analysts note that Chinese home prices are likely to fall by more than 10% this year, due to govt's monetary policy and other tightening measures. Home transactions could fall 7% this yr, while sales value may drop 10%.

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