Company Name: CAPITAMALLS ASIA LIMITED
| Research House: CIMB | Price Call: SELL | Target Price: 1.47 |
CIMB Research raised its target price for CapitaMalls Asia to $1.47 from $1.42, citing higher valuations for its listed entities such as CapitaRetail China Trust , but the brokerage kept its ‘underperform’ rating.
By 9:42 a.m., shares of CapitaMalls were 0.6% higher at $1.62, and have surged 43.4% since the start of the year, compared to the Straits Times Index’s 14% rise.
CapitaMalls reported a 40.7% rise in its second quarter net profit to $232 million, driven mainly by revaluation gains of its Singapore and Malaysia shopping malls, said CIMB.
CapitaMalls management noted that its tenants in China are seeing some slowdown in sales on a year-on-year basis and growth in tier-1 cities is normalizing at a faster pace, CIMB said.
OCBC Investment Research also raised the target price for CapitaMalls to $1.85 from $1.79, and kept its ‘lbuy’ rating, as it expects retail conditions in China to remain healthy and noted that the company’s valuations remain undemanding.
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