CapitaMall Asia

CapitaMall Asia: Reported yday, 3Q11 net profit of S$36.5m (+62% qoq, excluding reval gains in 2Q) with rev of S$66.9m (+6% qoq).
The higher rev was largely due to higher contribution from fund mgmt and higher property and project mgmt fees.

Nomura maintains Buy, TP 1.69, 3Q below expectations, but largely pricedin. Currently trades at 26.6% discount to NAV estimate of S$1.69/share and FY12F P/B multiple of 0.8x.

Citi maintains Buy, TP 1.88, encouraging Improvement in China Operations, attractive from a valuation perspective at its current price of S$1.26. Trading at almost 20% disc to its book value of S$1.50 and a hefty 40% disc to RNAV estimate of S$2.07. Spore malls account for about 60% of its RNAV of S$2.07, worth approx $1.25 per share, implying at current levels the market is attributing almost zero value for its China exposure.

Macq maintains Outperform, TP 2.32, 3Q11 results a tad light, but operational momentum on track. Believe CMA offers good value, trading at a 17% discount to its latest book value of S$1.50, expect the book value to rise on higher asset revaluation come its FY11 final results in Feb 2012. The market is not ascribing any value to CMA’s S$19.2bn fund mgmt business.

RBS maintains Buy, TP 1.90, expect stable earnings for the group as the current global uncertainty is unlikely to impact retail sales in China. Added catalysts from good take-ups at its upcoming Bedok residential project.

DB maintains Buy, TP 1.70, 3Q inline, firmer operating trends, valuation remains attractive.