CapitaLand (CAPL SP, C31)
Target Price: S$4.33
CapitaLand’s new CEO, Lim Ming Yan has realigned the group to simplify its organisational structure and sharpen its focus on the key growth markets of Singapore and China. Its business in China is showing encouraging signs, with residential sales surging as of 9M12 (+61% yoy in terms of number of units sold) and 14 retail malls to be launched in 2012-14, which should boost the overall ROE from its China portfolio. Net gearing remains at a comfortable level of 0.46x (debt headroom ~S$2b) and this will allow management to stay nimble and be selective in their future acquisitions. We have a target price of S$4.33, pegged at a 15% discount to our RNAV of S$5.09/share.
Technically, the stock has trended lower since making a yearhigh of S$4.03. It needs to be supported above S$3.75/3.40 for further upside towards S$4.15/4.60.
No comments:
Post a Comment