Company Name: CAPITALAND LIMITED
| Research House: OCBC | Price Call: BUY | Target Price: 3.21 |
OCBC Investment Research has cut its target price for property developer CapitaLand to $3.21 from $3.40 and kept its buy rating, citing lower average selling prices for its residential developments.
CapitaLand shares fell 0.3% to $2.93, but have gained 33% since the start of the year.
CapitaLand, Southeast Asia’s largest property developer, on Monday reported a 31% climb in first-quarter net profit to $133.2 million, helped by higher operating income and larger portfolio gains.
Poor sales from its residential units in China continued to weigh on CapitaLand’s overall sales in the first quarter, OCBC said. The company sold only 189 units in China in January-March.
However, broking house Maybank Kim Eng said in a report that CapitaLand may benefit from some policy loosening in tier 2 and 3 cities in China, and raised its target price to $4.00 from $3.96.
A loosening could help developers maintain strong contracted sales momentum into the middle of the year, and sales could recover strongly in May, said Kim Eng, which kept its buy rating.
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