Wednesday, November 2, 2011

CapitaLand

CapitaLand: Has secured 2 residential sites for 303.83m yuan and 226.18m yuan, totaling 156,627 sqm in Guangzhou's Panyu District and Shanghai's Pudong District in China.

Nomura maintains Buy with TP $4.05. Note that NAV accretion minimal; deployment of capital to grow affordable housing business in China within market’s expectation. Trades at 41.1% discount to NAV and 0.75 FY12F PBV, vs the average 0.9x FY12F PBV of the other developers, valuation remains undemanding.

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