Wednesday, April 25, 2012


CMA: 1Q12 results, broadly inline with mgt’s previous prospect statement. Revenue at $70.9m, +41% yoy, mainly due to contribution from the Invmt Business segment, following acq of Queensbay Mall in Apr ’11 and 3 malls in Japan in Feb ’12. Revenue from the Mgt Fee Business also improved due to higher fund, project and property mgt fees due to better performance of shopping malls and new projects undertaken. Net profit at $66.8m, +36% yoy. However, note the $32m revaluation gain arising from the acq of the 3 Japan malls, which helped offset higher finance cost (+$6.9m due to increased debt) and lower contribution from associates and JCEs ($11.3m, due to absence of profit from sale of units of The Orchard Residences and lower share of results from CMT). On outlook, CMA remains confident of China’s economy and will focus on the opening of its 7 malls this year. Separately, CMA says it is developing its first shopping mall in south Beijing. It has signed a conditional agreement to acq the site for the shopping mall at Xinyuan Street in Daxing district. Subject to approval, CMA plans to develop a 7-storey mid-to-high end shopping mall with total GFA of ~122k sm and ~1500 car park spaces. The mall has a 40yr land lease tenure. When completed in 2015, the proposed mall will be one of the first major malls in Daxing and will serve an immediate catchment of ~600k residents. Daxing has been identified as one of five new districts to be given priority for devt. The govt has given an invmt commitment of Rmb 290b in infrastructure to improve transport connectivity, and will build Beijing’s 2nd int’l airport there. The stock trades at 1x P/B.

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