(CMMT MK/HOLD/RM1.59/Target: RM1.53)

CMMT’s 1Q17 core net profit dropped 1.7% qoq and 2.0% yoy, mainly on account of lower rental reversions and a decline in occupancy rates at the portfolio level. As the entrance of a new retail mall will further intensify competition, management remains cautiously optimistic about its portfolio rental reversions (excluding Sungei Wang Plaza) remaining stable throughout 2017. Maintain HOLD. Target price: RM1.53. Entry price: RM1.40.

Source: UOB Kay Hian Research - 19 Apr 2017