CAPL reported 3Q12 PATMI of S$148.5m, up 85% YoY mostly due to gains from the divestments of Ascott Guangzhou and Ascott Raffles Place and stronger operating income. Excluding one-time items, we estimate core PATMI at S$89.8m which is mostly in line with expectations. CAPL sold 911 new Chinese homes in 3Q12 – a positive sign, in our view, that the uptick in pace of sales last quarter (812 units sold) has been sustainable thus far. In Singapore, home sales remain muted with only 70 units sold in 3Q12, down significantly from 202 units in 2Q12. Retail mall subsidiary CMA reported 3Q12 PATMI of S$62.4m, increasing 70.8% YoY mostly due to Minhang and Hongkou contributions and increased management fees. We continue to see value in CAPL’s price share (0.9x book and 0.7x RNAV) and maintain our BUY rating with a higher fair value estimate of S$3.67 (25% discount to RNAV), versus S$3.32 previously, mostly due to higher valuations of listed holdings.
Little surprises in 3Q12 numbers
CAPL reported 3Q12 PATMI of S$148.5m, up 85% YoY mostly due to gains from the divestments of Ascott Guangzhou and Ascott Raffles Place and stronger operating income. Excluding one-time items, we estimate core PATMI at S$89.8m which is mostly in line with expectations. 3Q12 topline came in at S$686.9m - a 13% YoY increase mainly attributable to higher development recognition and stronger contributions from the retail mall and fee-based segments.
Sustaining pace of Chinese home sales
CAPL sold 911 new Chinese homes in 3Q12 – a positive sign, in our view, that the uptick in pace of sales last quarter (812 units sold) has been sustainable thus far. 3Q12 sales, in terms of units sold, were up 180% YoY and management reports demand from first time home buyers and up-graders. In 3Q12, 257 and 120 units were launched at The Loft, Chengdu, and The Pinnacle, Shanghai with healthy take up rates of 81.3% and 67.5%, respectively. In Singapore, home sales remain muted with only 70 units sold in 3Q12, down significantly from 202 units in 2Q12. As of end Sep 12, The Interlace, d’Leedon and Sky Habitat were 71%, 58% and 73% sold respectively, and we see sales likely staying slow ahead given limited catalysts over the near term.
Chinese retail conditions still firm
Retail mall subsidiary CMA reported 3Q12 PATMI of S$62.4m, increasing 71% YoY mostly due to Minhang and Hongkou contributions and increased management fees. Retail conditions in the key Chinese market appear healthy: 9M12 shopper traffic, tenant sales and same-mall NPI in China were up 8.4%, 10.7% and 18.4% YoY, respectively.
Maintain BUY with higher S$3.67 FV
We continue to see value in CAPL’s price share currently trading at 0.9x book and 0.7x RNAV. Balance sheet remains sturdy with S$6.3b cash and 31% net gearing. Maintain BUY with a higher fair value estimate of S$3.67 (25% discount to RNAV), versus S$3.32 previously, mostly due to higher valuations of listed holdings.
CAPL reported 3Q12 PATMI of S$148.5m, up 85% YoY mostly due to gains from the divestments of Ascott Guangzhou and Ascott Raffles Place and stronger operating income. Excluding one-time items, we estimate core PATMI at S$89.8m which is mostly in line with expectations. 3Q12 topline came in at S$686.9m - a 13% YoY increase mainly attributable to higher development recognition and stronger contributions from the retail mall and fee-based segments.
Sustaining pace of Chinese home sales
CAPL sold 911 new Chinese homes in 3Q12 – a positive sign, in our view, that the uptick in pace of sales last quarter (812 units sold) has been sustainable thus far. 3Q12 sales, in terms of units sold, were up 180% YoY and management reports demand from first time home buyers and up-graders. In 3Q12, 257 and 120 units were launched at The Loft, Chengdu, and The Pinnacle, Shanghai with healthy take up rates of 81.3% and 67.5%, respectively. In Singapore, home sales remain muted with only 70 units sold in 3Q12, down significantly from 202 units in 2Q12. As of end Sep 12, The Interlace, d’Leedon and Sky Habitat were 71%, 58% and 73% sold respectively, and we see sales likely staying slow ahead given limited catalysts over the near term.
Chinese retail conditions still firm
Retail mall subsidiary CMA reported 3Q12 PATMI of S$62.4m, increasing 71% YoY mostly due to Minhang and Hongkou contributions and increased management fees. Retail conditions in the key Chinese market appear healthy: 9M12 shopper traffic, tenant sales and same-mall NPI in China were up 8.4%, 10.7% and 18.4% YoY, respectively.
Maintain BUY with higher S$3.67 FV
We continue to see value in CAPL’s price share currently trading at 0.9x book and 0.7x RNAV. Balance sheet remains sturdy with S$6.3b cash and 31% net gearing. Maintain BUY with a higher fair value estimate of S$3.67 (25% discount to RNAV), versus S$3.32 previously, mostly due to higher valuations of listed holdings.
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