LATEST NEWS, CORPORATE FROM THE EDGE CMMT ends FY15 on a positive note By MIDF Research / The Edge Financial Daily | January 22, 2016 : 10:28 AM MYT Printer-friendly versionSend by emailPDF version Translated by Google Translator: Select Language▼ This article first appeared in The Edge Financial Daily, on January 22, 2016.
CapitaLand ( Valuation: 2.60, Fundamental: 1.00) Malaysia Mall Trust (Jan 21, RM1.40) Maintain buy with a higher target price of RM1.66 (previously RM1.62): CapitaLand Malaysia Mall Trust (CMMT) financial year 2015 (FY15) core net income of RM155.1 million met 96% and 104% of ours and consensus estimates. CMMT announced distribution per unit (DPU) of 2.09 sen for the quarter. Full-year DPU is 8.60 sen.
CapitaLand_fd_220116
FY15 core net income increased 4% year-on-year (y-o-y), in line with higher topline (+9% y-o-y). The improvement in earnings was driven by i) higher contribution from the East Coast Mall following the completion of two-year asset enhancement works; ii) earnings contribution from newly acquired Tropicana City Mall and Tropicana City Office Tower; and iii) improved performances of most of its property assets which offset the lower earnings contribution from Sungei Wang Plaza.
Excluding Sungei Wang Plaza, which registered negative rental reversion of -31% y-o-y (due to ongoing mass rapid transit [MRT] works), overall portfolio rental reversion is good at +7.9% y-o-y in FY15. We maintain our earnings forecast for FY16. Core net income of CMMT for FY16 is estimated to grow at 13% y-o-y, due to higher earnings contribution from Gurney Plaza, The Mines and East Coast Mall. Full-year earnings contribution from Tropicana City Mall and Tropicana City Office Tower are also expected to help earnings growth.
Our “buy” call on CMMT is premised on i) positive rental reversion outlook for most of its property assets which should offset the temporary weakness in Sungei Wang Plaza; ii) outlook for Sungei Wang Plaza should improve upon completion of the MRT project in 2017; and iii) attractive net dividend yield of 5.9%, which is the highest among real estate investment trusts under our coverage. — MIDF Research, Jan 21
These counter is good for receiving annual income but not suitable for investors looking for massive capital growth. REITS is for receiving regular dividends with low risk.
shortinvestor77 Sole all at RM 1.45. 13/02/2016 17:49
Adoi, why so quickly cabut? I am still holding more than 100k share and now it's $RM1.50 & I am still holding for the dividend. If it goes up to RM1.70, then I might consider selling then.
With a more favourable environment, CAPITALAND MAL.MALL TST. improves to Positive
CAPITALAND MAL.MALL TST. (MY), a company active in the Real Estate Investment Trusts industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 3 out of 4 stars, as well as its unchanged, defensive market behaviour. The title leverages a more favourable environment and raises its general evaluation to Positive. As of the analysis date June 28, 2016, the closing price was MYR 1.56 and its potential was estimated at MYR 1.66.
With a more favourable environment, CAPITALAND MAL.MALL TST. improves to Positive
CAPITALAND MAL.MALL TST. (MY), a company active in the Real Estate Investment Trusts industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 3 out of 4 stars, as well as its unchanged, defensive market behaviour. The title leverages a more favourable environment and raises its general evaluation to Positive. As of the analysis date June 28, 2016, the closing price was MYR 1.56 and its potential was estimated at MYR 1.66.
I feel we will only see a proper recovery in CMMT after the completion & opening of Bukit Bintang MRT in mid-2017. Luckily, their other properties seem to be doing well.
The trading range seems to be 1.51 - 1.57 these days. I don't expect this stock to go much higher than 1.60 this year, unless ... BNM drops interest rates again, or we get some nice tax breaks in Budget 2017...
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Beza
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Posted by Beza > 2016-01-19 14:37 | Report Abuse
KENANGA MALU. TAK NAK JUMPA! RUN ALREAY!