CapitaLand - DBS Research 2020-01-02: Wind Beneath Its Wings

CAPITALAND LIMITED (SGX:C31) | SGinvestors.io CAPITALAND LIMITED (SGX:C31)

CapitaLand - Wind Beneath Its Wings


Maintain BUY, Target Price raised to S$4.50.

  • We raise our target price to S$4.50, pegged to 18% discount to revalued net asset value (RNAV) of S$5.44. With the CAPITALAND (SGX:C31) and Ascendas-Singbridge (ASB) merger completed, 2020 will herald a new era of growth with a renewed focus in establishing dominance in key markets of Singapore and China while looking at opportunities to deploy capital in growth markets of India and Vietnam.
  • Our Target Price implies a price/forward NAV of 1.0x, pegged to historical 5-year +1 standard deviation (SD).


Where we differ: Ability to drive sustainable ROE.



Asset reconstitution strategy at work.

  • CAPITALAND’s management has shown fast execution on its asset recycling strategy and we believe that China, Japan and Singapore are on the cards in 2020. In terms of capital deployment, we remain excited on its prospects in India, Vietnam and China.
  • In Singapore, CAPITALAND is relooking potential redevelopment opportunities for its assets within the Science Park, which we believe will be NAV-enhancing in the medium term.
  • Click on view full report button below for complete analysis.


Valuation:

  • Our Target Price of S$4.50 is based on a 18% discount to our adjusted RNAV of S$5.44/share. See attached report for breakdown of RNAV.





Derek TAN DBS Group Research | Rachel TAN DBS Research | https://www.dbsvickers.com/ 2020-01-02
SGX Stock Analyst Report BUY MAINTAIN BUY 4.50 UP 4.000



Advertisement



MOST TALKED ABOUT STOCKS / REITS OF THE WEEK



loading.......



ANALYSTS SAY


loading.......