Stock Name: CapMallsAsia
Company Name: CAPITAMALLS ASIA LIMITED
Company Name: CAPITAMALLS ASIA LIMITED
| Research House: CLSA | Price Call: BUY | Target Price: 1.64 |
CLSA Asia-Pacific Markets has upgraded Singapore shopping mall developer, CapitaMalls Asia (CMA) (CMAL.SI), to buy from underperform and raised its target price to $1.64 from $1.44.
CLSA said it believes that concerns of an over-leveraged balance sheet have been exaggerated as CMA is in line with its Chinese peers. China accounts for around 48% of CMA’s gross asset value.
CLSA said it believes that concerns of an over-leveraged balance sheet have been exaggerated as CMA is in line with its Chinese peers. China accounts for around 48% of CMA’s gross asset value.
CLSA also said that it saw deep value in CMA’s China mall business. At the company’s current share price, CMA’s China mall business implied 3,305 yuan ($669.7) per square metre or $0.34 per share, CLSA said, which depicts a deep discount for the asset.
CMA opened three malls in China in 2011 and aims to open seven new malls in the country this year. The ramp-up of new malls may narrow its net asset value discount, CLSA said, adding that acquisitions in 2012 are likely to be more yield-accretive.
At 10:41 a.m., CMA shares were up 2.5% at $1.245. The stock fell approximately 42% last year.
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