CMA

CMA: Generally higher than estimated 2Q Rev at $62.8m -13.9%yoy +20.1%qoq with net profit at $164.9m +100.8%yoy +228.6%qoq of which $67.6m were revaluation gains. Gross profit at $40.3m was actually down 11.1%yoy +36.0%qoq (low base in 1Q). Lower rev yoy was due to divestment of 3 malls in Msia to CMMT and Clarke Quay to CMT in July 2010 but mitigated through rental rev from newly acquired Msia Queensbay mall. Fair value gains came from both CMT and China properties with bulk of rev also coming from the 2 countries, China’s rev at $23.5m up 13.2% and Sg at up $29.1m 1.9% yoy.

Potential catalysts include developments of the Bedok white site and Jurong Gateway. CMA could also realise gains if ION is spun off to CMT.

Co now trades at 0.96x P/B with NAV at $1.52. Interim div of 1.5c declared with mgmt guidance for another final div of 1.5c at the end of the yr (approx 2.0% div yield) compared to prev yr of 2c.

Counter is still in long-term downtrend. Support at $1.40 with near-term resistance at prev high $1.51

Counter is now in consolidation phase, having recovered from its drop, with resistance at $1.99 and support at $1.89