CIMB SECURITIES on 15 Jan 2013
CMA has acquired a shopping-mall site in Wuhan in China, deepening its exposure to this city to four malls. Entry cost looks reasonable, with a yields-on-cost target of 8 to 9 per cent (after one rental cycle) achievable in our view. The site could be recycled to its PE fund in the future, we believe.
The acquisition is not expected to move RNAV much. We trim our FY14 core EPS after updating our rent assumptions. We lift our RNAV and target price (10 per cent discount to RNAV) on a higher CRCT share price and slight accretion from this acquisition.
We remain "neutral" on valuations and see execution and asset recycling to dictate share price in FY13.
NEUTRAL
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