| MAYBANK KIM ENG |
CGS CIMB |
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Non-operational leakage drags profits
Non-operational items cut TP by 17%.
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| OCBC | MAYBANK KIM ENG |
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Captialand Limited: Beating its KPIs like a Boss CapitaLand’s 4Q18 results fell slightly short of our expectations despite an increase in its operating PATMI by 26.1% YoY to S$213.8m. A first and final DPS of 12 S cents was declared, similar to FY17 and translates into a dividend yield of 3.5%. For the full-year, management was active on capital recycling, having made divestments amounting to S$4.0b (target: S$3b). Proceeds were redeployed into S$6.1b of new investments. FY18 ROE was 9.3% (target: at least 8%), higher as compared to the 8.6% registered in FY17. CapitaLand's real estate AUM rose 12% to S$100.1b, as at end-2018, surpassing its target to hit S$100b by 2020. Notwithstanding headwinds in China, CapitaLand remains optimistic on the outlook of the residential market, especially on Tier-1 and selected Tier-2 cities. Its projects there are still able to command margins ranging around 10-30%. After adjustments, we derive a slightly higher fair value estimate of S$3.98 (previously: S$3.96).
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Singapore Medical Group (SMG SP)
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