ValueBuddies.com : Value Investing Forum - Singapore, Hong Kong, U.S. › ValueBuddies.com › Singapore Listed Companies › C - C v
CapitaMalls Asia

CapitaMalls Asia

Thread Rating:
  • 3 Vote(s) - 2.33 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Nick Offline
Posting Freak
*****
Posts: 2,278
Threads: 78
Joined: Oct 2010
Reputation: 34
#1
09-12-2010, 05:32 PM (This post was last modified: 12-03-2011, 01:29 AM by Nick.)
CapitaMall Asia IPO'ed with a bang last year rising from $2.12 to over $2.60 but since then it has been trending downwards to $1.94 today.

CMA has 4 main income generating abilities -

1) It is a mall developer in Asia
2) It earns rental income from its developed malls
3) It earns recurring REIT Management fees from its REITs
4) It earns dividend income from its stakes in listed REITs/JV coys.

It is under-taking many development projects in China and India. It has a very healthy balance sheet of $700 million net cash primarily generated from the sales of its malls to its listed REITs. Its prospects seems good though the recent clampdown in Chinese properties may impact it in the future. Not very sure about the quality of its overseas malls.

Any views on this company ?

(Not Vested)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
Find
Reply
Risk Adverse Offline
Newbie
*
Posts: 16
Threads: 0
Joined: Dec 2010
Reputation: 0
#2
09-12-2010, 07:52 PM
As CapitaMalls Asia is in the MS index, the BBs may be pushing it down for end of year window dressing. Then after the new year, the price will be pushed up to show a good return.
Find
Reply
yaosheng Offline
Junior Member
**
Posts: 44
Threads: 5
Joined: Nov 2010
Reputation: 0
#3
10-12-2010, 11:05 AM
although CMA has a lot more malls in China than in Singapore, its EBIT seems to be heavily skewed towards the local scene? (72% SG vs 12% China)

as of now, it seems to me to be more of a SG retail play rather than a true pan-Asian retail giant
Find
Reply
Nick Offline
Posting Freak
*****
Posts: 2,278
Threads: 78
Joined: Oct 2010
Reputation: 34
#4
10-12-2010, 12:42 PM
I am guessing it is because most of the malls in Singapore are fully matured while the bulk of the Chinese malls are under development so they can't generate income ? Or perhaps it is an issue of the quality of the overseas mall ?
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
Find
Reply
Risk Adverse Offline
Newbie
*
Posts: 16
Threads: 0
Joined: Dec 2010
Reputation: 0
#5
10-12-2010, 02:37 PM (This post was last modified: 22-12-2010, 10:40 AM by Risk Adverse.)
(10-12-2010, 12:42 PM)Nick Wrote: I am guessing it is because most of the malls in Singapore are fully matured while the bulk of the Chinese malls are under development so they can't generate income ? Or perhaps it is an issue of the quality of the overseas mall ?

The China malls are much lower in value compared to Singapore malls. As China property prices increase, the malls will appreciate in tandem. Currently CMA is hamstrung by the property cooling measures in China. There is talk of a rate hike this weekend by the Chinese authorities. All these negative news need to be digested before this stock can start moving again.
Find
Reply
Musicwhiz Offline
Posting Freak
*****
Posts: 4,958
Threads: 1,349
Joined: Sep 2010
Reputation: 36
#6
10-12-2010, 02:40 PM
Interestingly, there was an article in TODAY written by the CEO of CMA on China's Shopping Mall boom. Please see attached.


Attached Files
.pdf   TODAY Dec 10, 2010 - China's Shopping Mall Boom.pdf (Size: 122.42 KB / Downloads: 62)
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
Website Find
Reply
Ben Offline
Senior Member
****
Posts: 598
Threads: 4
Joined: Oct 2010
Reputation: 15
#7
10-12-2010, 04:42 PM
(10-12-2010, 02:40 PM)Musicwhiz Wrote: Interestingly, there was an article in TODAY written by the CEO of CMA on China's Shopping Mall boom. Please see attached.

MW, thanks for sharing this article.

Personally, I think CMA strategy of going into 2nd and 3rd tier cities is a good one. The retail opportunity there has a lot of grow potential. Unlike big cities like Bejing and Shanghai, shopping mall is still quite a new concept in the 2nd and 3rd tier cities. The concept of everything under one roof is starting to take off in these cities and therefore CMA should reap benefits in the coming years.

Also, the group has very good experience in running shopping mall. Look at how they transform IMM and Bt Panjang Plaza after they bought over these two properties, and you will know how good they are in the management of shopping mall.

Beside, other than collecting rental income from renting out the retail shops in their mall, by owning these malls CMA also stand to gain when the value of these property appreciate.

I think to invest in CMA, we need to give the company 2 to 3 years time to see the rewards.
Find
Reply
Nick Offline
Posting Freak
*****
Posts: 2,278
Threads: 78
Joined: Oct 2010
Reputation: 34
#8
10-12-2010, 05:00 PM
Ben is very right. Thanks MW for the article Smile

Lets not forget that CMA has a ready-buyer for its Chinese malls in the form of CRCT and local malls in CMT haha ! It is the REIT Manager for these 2 REITs.
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
Find
Reply
donmihaihai Offline
Member
***
Posts: 336
Threads: 0
Joined: Sep 2010
Reputation: 7
#9
10-12-2010, 06:06 PM
Good PR by a CEO.
Find
Reply
Risk Adverse Offline
Newbie
*
Posts: 16
Threads: 0
Joined: Dec 2010
Reputation: 0
#10
12-12-2010, 01:52 AM
(10-12-2010, 04:42 PM)Ben Wrote:
(10-12-2010, 02:40 PM)Musicwhiz Wrote: Interestingly, there was an article in TODAY written by the CEO of CMA on China's Shopping Mall boom. Please see attached.

MW, thanks for sharing this article.

Personally, I think CMA strategy of going into 2nd and 3rd tier cities is a good one. The retail opportunity there has a lot of grow potential. Unlike big cities like Bejing and Shanghai, shopping mall is still quite a new concept in the 2nd and 3rd tier cities. The concept of everything under one roof is starting to take off in these cities and therefore CMA should reap benefits in the coming years.

Also, the group has very good experience in running shopping mall. Look at how they transform IMM and Bt Panjang Plaza after they bought over these two properties, and you will know how good they are in the management of shopping mall.

Beside, other than collecting rental income from renting out the retail shops in their mall, by owning these malls CMA also stand to gain when the value of these property appreciate.

I think to invest in CMA, we need to give the company 2 to 3 years time to see the rewards.

The dividends are pittance so how to wait 2 or 3 years for capital appreciation. Better park money elsewhere for now.
Find
Reply


Forum Jump:


Users browsing this thread: 6 Guest(s)