DBS Vickers is maintaining its “buy” on CapitaLand with a $3.70 target price as the developer offers “compelling value, trading at an attractive 0.76x P/Bk and 0.65x P/RNAV.”
In a Wednesday report, lead analyst Rachel Tan Lih Rui says, “We expect the group’s strategy to focus on growing its commercial portfolio, and coupled with opportunistic asset recycling of mature assets into its listed REITs/funds, presents upside potential to our earnings.”
CapitaLand’s current property portfolio has up to 75% of its assets in retail malls, and commercial integrated developments, including Ascott Group, which offer strong income visibility in the medium term.
“We see improved operating performance for its malls as the properties reach maturity, boosted by the completion of four Raffles City mega developments in China in the medium term.”
Leveraging on its fund management expertise, CapitaLand aims to launch 5-6 private equity(PE) funds with funds under management of $8-10 billion by 2020.
“We think that by tapping on third-party capital, CAPL would be able to leverage on its larger scale to achieve better economies of scale, capitalise on market opportunities and at the same time de-risk its property level exposure,” adds the analyst.
At 9.52am, shares of CapitaLand are up 0.63% at $3.19.
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In a Wednesday report, lead analyst Rachel Tan Lih Rui says, “We expect the group’s strategy to focus on growing its commercial portfolio, and coupled with opportunistic asset recycling of mature assets into its listed REITs/funds, presents upside potential to our earnings.”
CapitaLand’s current property portfolio has up to 75% of its assets in retail malls, and commercial integrated developments, including Ascott Group, which offer strong income visibility in the medium term.
“We see improved operating performance for its malls as the properties reach maturity, boosted by the completion of four Raffles City mega developments in China in the medium term.”
Leveraging on its fund management expertise, CapitaLand aims to launch 5-6 private equity(PE) funds with funds under management of $8-10 billion by 2020.
“We think that by tapping on third-party capital, CAPL would be able to leverage on its larger scale to achieve better economies of scale, capitalise on market opportunities and at the same time de-risk its property level exposure,” adds the analyst.
At 9.52am, shares of CapitaLand are up 0.63% at $3.19.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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