CMA

Latest views on CMA, was that recent sell-down was not unique to CMA, as its HK-listed peer Hang Lung Props was also been sold off in HK, which Kim Eng think has got to do with the risk-off trades pertaining to stocks with China exposure, given the concerns of slowing growth or even heightened risks of a hard landing. There was also an article published in a HK newspaper yesterday ( Ming Pao Daily News), CapitaLand/CMA's project in Chaotianmen in Chongqing was reported to be delayed as local authorities have not approved the building and design plans. Kim Eng do not feel that the change in political leadership in the municipal of Chongqing will cause this project to be aborted. House had a quick chat with co. and they reiterated that there are no major problems with the project. It is only natural that the approval process for a project of this nature and size would take a few months, and the consortium had only clinched the site in late November last year. Current valuations are attractive at 0.84x P/B, 0.54x P/RNAV (vs Hang Lung's current 1x P/B). Kim Eng has Buy Call and $2.01 TP. Technically, RSI and Stochastics are signaling signs of OverSold, and are beginning to hook upwards. Near term resistance could be at the 200 day EMA of $1.473, while support at recent low of $1.34.