CapitaLand

UOBKayhian on 4 May 2015

FY15F PE (x): 24.3
FY16F PE (x): 22.8

Results in line with expectations. CapitaLand reported 1Q15 net profit of S$161.3m, down 11.8% yoy due to the absence of contribution from Australand (discontinued operations). The group’s PATMI from continuing operations for 1Q15 was 9.4% higher yoy due to contribution from the increased stake in CapitaMalls Asia as well as portfolio gains, partially offset by lower revaluation gains from investment properties. Excluding exceptional items, core operating PATMI of S$155.3m is in line with our expectations, accounting for 22% of our full-year forecast. Maintain BUY and target price of S$4.08, pegged at a 20% discount to our RNAV of S$5.11/share. The stock is currently trading at a deep 28% discount to our RNAV