CMA

CMA: Nomura reiterate Buy Call but reduces TP to $1.69 from $2.23. Add that more transaction benchmarks could start to narrow discount to book. Believe the 17.3% discount to FY12F book at which the stock is trading may be overly conservative.

Expect potential near-term catalysts to narrow discount to book include:
1) more transaction benchmarks as developers deploy capital for acquisitions in
China; and
2) higher-than-expected dividend payout for the full year.

House cut earnings forecast by an average 20.7% to chiefly reflect the latest completion schedule of CMA’s malls in China and SG; higher pre-op expenses and the acquisition of additional stakes in the Shanghai malls; and revised earnings for CMT.