CapitaLand: +1.3% at $3.19.
Co announced 2 divestments in the past 2 days, i) sold a residential site in Shanghai for $181m, booking a 82% gain of $82m, and ii) sold Hilton Double Tree Hotel in Kunshan to the same party for $49, booking a 58% gain of $18m. Both assets were bought as part of the OODL transaction last yr. CapL said if both transactions were effected on 1 Jan 2011, the EPS for 1Q11 would have been 96% higher at 4.7c instead of the 2.4c reported...
StanChart views transactions positively, says it shows CapL to be pro-actively managing its earnings to improve ROE. Notes co has targeted to invest $6b over the next 12 months in earnings-generative projects such as Spore residential, China Residential, China retail and Ascott svc residences, but points out if co fails to substantially meet this target, mgt could consider some form of capital management via CB redemption or share buybacks...
Reiterates Outperform rating with TP $4.25/sh, based on 15% discount to 2011E RNAV of $5/sh.
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