SG: MARKET PULSE: CMA, CDLHT (30 Oct 2013)

Stock Name: CapMallsAsia
Company Name: CAPITAMALLS ASIA LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 2.55

Stock Name: CDL HTrust
Company Name: CDL HOSPITALITY TRUSTS

Research House: OCBC

Price Call: BUY

Target Price: 1.83

MARKET PULSE: CMA, CDLHT

30 Oct 2013

KEY IDEA CapitaMalls Asia: Chinese malls show underlying strength CMA reported 3Q13 PATMI of S$64.8m, which increased 4.0% YoY mainly due to profit recognition from Bedok Residences, the opening of Star Vista and a higher contribution from CMT. Adjusting for one-time items and fair value gains, 9M13 PATMI cumulates to S$179.2m, forming 93% of our full year FY13 PATMI forecast and we judge this quarter to be above expectations due to lower-than-anticipated opening costs from newly opened malls. CMA's Chinese portfolio assets continue to put up firm numbers; the overall committed occupancy rate increased to 97.2% as at end Sep 13 from 96.9% as at end Jun 13. 9M13 tenant sales were also up a healthy 9.8% (excluding Tier 1 cities: 11.0%) while 9M13 shopper traffic increased 1.5%. We rate the stock with a BUY rating and an unchanged fair value estimate of S$2.55. (Eli Lee) MORE REPORTS CDL Hospitality Trusts: 3Q13 as expected CDLHT has reported 3Q13 results that are generally in-line with ours and the street's expectations. 3Q13 revenue declined 0.8% YoY to S$35.9m. RevPAR for CDLHT's Singapore hotels had declined 6.4% YoY, driven by a 5.6% drop in average room rate. As we had anticipated, the rate of RevPAR decline was less in 3Q13 than over 1H13, which saw RevPAR fall 8.1% on the back of increased supply in the sector. 3Q13 net property income fell 1.7% YoY to S$33.0m. 3Q13 DPU is 2.64 S cents (down 2.9% YoY), bringing 9M13 DPU to 8.05 S cents, versus ours and the street's FY13 forecasts of 10.4 S cents and 11.1 S cents respectively. We maintain a BUY rating on CDLHT but place our S$1.83 fair value estimate under review. (Sarah Ong)

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