CapitaLand   

Sentosa IR

Capitaland's 1st quarter profit is 469% that of last year~ sure cheong on monday~

 

Capitaland cheonging?

 

Isn't it good for the construction stocks too?

 

 

I believe this counter will again hit new high (highest so far is $8.70) after they release their financial results tomorrow.

 

 

It said on Thursday it was looking for opportunities in Russia's housing and office property market.

"We are exploring the residential and office market in St Petersburg and Moscow," CEO Liew Mun Leong told analysts and media at a briefing.

CapitaLand has signed a memorandum of understanding with Russia's Eurasia Logistics Ltd. to build 16 logistics properties across key cities in Russia, Kazakhstan, and Ukraine for US$3 billion. The deal will see CapitaLand take an initial 10% in the Moscow-based logistics property developer with the option to raise the stake up to 25%. It said it would spend about $100 million on its 10% equity stake.

 

is a good counter to consider, can leverage on the call warrant due to lower cost

 

It said on Tuesday it had acquired a one-third stake in East Asia Satellite Television Ltd for $129 million from eSun Holdings Ltd. It acquired the stake through its indirect, wholly owned subsidiary CapitaLand Integrated Resorts Pte Ltd.



The deal also gives CapitaLand an indirect, 20% strategic interest in Macao Studio City, planned property development which will consist of an integrated leisure and entertainment centre in Macau.

 

i think it is a very good time to buy. many investors r put off by the high price to buy the stock. we must remember capitaland is a very different real estate co. they r slowly moving towards fee based income and their asset light strategy has not failed. also, there are lots of synergyn between their listed co and reits. hence, fundamentals wise, it is a solid co.

 

Capitaland is a good buy now? the current price is 7.050, drop almost 0.80 since yesterday...

 

March or April  07 as reported in the papers.

 

Anybody know when is the orchard turn launch ?

 

It dropped after Credit Suisse cut its ratings on CapitaLand to "underperform" from "neutral". Analyst Melissa Bon maintained a target price of $5.78 for CapitaLand.



Bon said in a note to investors that CapitaLand was not the best proxy for the rallying property market.

 

It rose after it said it has paid $548 million to buy a large site outside the prime residential districts in Singapore.



CIMB analyst Sai Min Chow raised its rating to "outperform" from "neutral" and its price target to $8.12 from $6.95, and said the site would be redeveloped into a condominium targeting the mid-tier market.



"Given the inherent risk of undertaking such a huge project, we believe CapitaLand has once again stamped its leadership position at a time when most developers prefer to replenish their land bank in prime residential districts," said Sai.

 

With some underlying assumptions changed, ML arrived at a RNAV of $7.05 (in particular the S'pore office segment). Pegging a 20% premium on $7.05, the 12 month, price objective of $8.50 is arrived at (a premium on property stocks, historically....exists).

The upsizing of Capland's landbank in the upper mid segment is indeed positive (Gillman Heights) as opposed to the upmarket segment like Orchard Residences and etc etc, increasing her GFA.

But many also forget that last year, the 10 year convertible bonds raised $340 million with only a coupon rate of 2% (tells you a lot ..right) when long bonds and other corporate bonds gave better yield ... is something amiss... not really if u understand Capland's strategy ...blah blah blah. Moreover the CBs px conversion is at $7.31 (which  means it is attainable) and $8.50 is not far fetched ..what matters ...for us investors, is the time frame.

The DB70611 covered warrants (and one or two others like the MBL one), for those savvy on warrs trading is very apt for hitching onto this ride. Coversion is 1:2 and strike is $6.80 ... of course u must pay attention to its implied volatility, delta and effective gearing not just premium and simple gearing. Warning: cov warrs can hit zero value .... so caveat emptor.

 

It rose to a record high after Merrill Lynch raised its price target to $8.50 on positive outlook for the office and residential property markets.



"CapitaLand remains a must-own stock within the Singapore property sector, offering unique geographic exposure, quality management and potential for further upward revisions to earnings," said Merrill Lynch, which upped its target from $6.10 and maintained its "buy" rating.



The brokerage also expects CapitaLand's growing asset management business to reach $30 billion by 2010.

 

Reached an all-time high this week on the positive sentiment over the residential market. The company is expected to launch its upmarket project in the heart of the prime Orchard Road area in the first quarter at record prices.

 

DBSV raised its share price target to $7.00 from the previous target of $6.85. Analyst Wallace Chu said the price target was raised to reflect the net asset value impact of CapitaLand's acquisition of a 20% stake in Macao Studio City, a casino and entertainment resort in the Chinese enclave of Macau.



"While Capitaland's involvement captures the excitement and growth of the development of Macao, it also helps to springboard their expertise to other parts of the region," Chu said in a client note.



DBSV raised its call on CapitaMall Trust to "buy" from "hold" and lifted the target price to $3.30 from $2.75 previously. Analyst Cheng Wee Tan said the upgrade stems from CapitaMall's 20% stake in CapitaRetail China Trust (CRCT).

"CRCT is likely to become a top Chinese retail mall player moving forward," Cheng said.

 

Possibly still on uptrend

 

It said on Tuesday it would invest $764 million in a casino complex in Macau and is looking for other entertainment resorts in the region.



CapitaLand said it would pay $440 million in the first phase of development for the planned Macao Studio City in the former Portuguese colony -- the only place in China that allows casino gambling.



It said it would then invest $324 million in the complex, to be built on a 1.5-million square feet site. The total investment sum includes some contingency for higher development costs, company executives told analysts and media at a briefing on Tuesday.



It expects the Macau project to generate a 15.2% internal rate return (IRR), or almost twice the 8% rate that it derives from its projects in Singapore.



IRR is a rate which can be earned on invested capital and helps firms to decide whether to make long-term investments.



"We are also looking at other large-scale projects in Indochina, China and India," it said.



The company said it had substantial cash reserves for the investment but might tap the debt markets if required.



Unlike rival CityDev , which has the largest landbank in the city-state, CapitaLand focuses on managing properties rather than owning the assets. It manages two of Singapore's largest REITs, CapitaMall Trust  and CapitaCommercial Trust.

 

Will they buy a stake in Genting  as well???

Not a bad idea...since they may get some spinoff from the Sentosa IR...who knows...they may get some building contracts....

Also am puzzled...why a GLC register a company called Raffles Casino.....will they be using this brand name someday...???

 

To reflect the returns from the Macau investment, brokerage house CIMB raised its price target for CapitaLand shares to $6.95 from $6.70 but maintained a "neutral" rating.



"We still see limited upside for the stock as we believe most of the positives from its core property development and capital recycling businesses have been priced in," analyst Sai Min Chow wrote in a client note.