CapitaLand Limited - OCBC Investment 2016-08-04: 2Q16 results within expectations

CapitaLand Limited - OCBC Investment 2016-08-04: 2Q16 results within expectations CAPITALAND LIMITED C31.SI 

CapitaLand Limited: 2Q16 results within expectations

  • 2Q16 PATMI decreased 36.6% YoY to S$294.0m mainly due to lower fair revaluation gains from properties. 
  • We highlight that, in 2Q15, there was a one-off fair value gain of S$125.9m from the change of use of development projects, excluding which the group’s adjusted operating PATMI in 2Q16 would have risen 31.8% to S$171.6m given firmer performances from Chinese shopping malls and developments, contributions from CapitaGreen and the group’s serviced residences business. 
  • In terms of the topline, group revenues increased 9.7% to S$1,131.7m for the quarter due to strong contributions from the property development segment in China and Singapore and higher income from CapitaGreen and the group’s serviced residence business. 
  • Over the quarter, the group recognized progress billings from Cairnhill Nine in Singapore and in China, The Paragon in Shanghai and Vermont Hills in Beijing
  • Overall, we judge this quarter’s numbers to be broadly in line with expectations, and 1H16 revenues and PATMI now constitute 48.9% and 57.5% of our full year forecast, respectively. 
  • Maintain BUY with an unchanged fair value estimate of S$3.68.




Eli Lee OCBC Securities | http://www.ocbcresearch.com/ 2016-08-04
OCBC Securities SGX Stock Analyst Report BUY Maintain BUY 3.68 Same 3.68


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