MARKET SNAPSHOTS

STRAITS TIMES INDEX 3258. 01 -19.52 -0.60%

Stock Recommendation

CAPITALMALL TRUST

Company Background

CapitaMall Trust (CMT) is a real estate investment trust (REIT). CMT owns and invests in assets which are used, or predominantly used, for retail purposes primarily in Singapore. As of December 31, 2010, its portfolio consisted of a list of over 2,400 leases with local and international retailers. CMT's portfolio consists of 15 retail properties which are located in the suburban areas and downtown core of Singapore, such as Tampines Mall, Junction 8, Funan DigitaLife Mall, IMM Building, Plaza Singapura, Bugis Junction, Sembawang Shopping Centre, JCube, Hougang Plaza, Raffles City Singapore, Lot One Shoppers' Mall, Bukit Panjang Plaza, Rivervale Mall, The Atrium Orchard and Clarke Quay. As of December 31, 2010, it also owned approximately 19.62% interest in CapitaRetail China Trust. Its subsidiaries include CapitaRetail Singapore Limited and CMT MTN Pte. Ltd. On July 1, 2010, it acquired Clarke Quay. In February 2011, it acquired Iluma, a shopping mall located at Victoria Street.

Highlights

Financial Result

CapitaMall Trust (CMT) released its 1Q14 results this morning. NPI grew 5.3% YoY to S$114.3m, while distributable income increased 4.5% to S$89.1m. DPU for the quarter came in at 2.57 S cents, 4.5% higher than that achieved in 1Q13. This met 23.4% of both ours and consensus full-year DPU projections. The better performance was driven mainly by higher occupancy at Plaza Singapura and Atrium@Orchard, and completion of Phase 1 asset enhancement initiative (AEI) at IMM Building. Looking ahead, CMT will continue to focus on executing its AEIs at Bugis Junction and Tampines Mall. In addition, it will also embark on Phase 2 AEI at IMM Building and reconfigure Level 2 of JCube to enhance the shoppers experience. Source: OCBC Research - 23 Apr 2014

Avg Volume (4 weeks):9,059,1054 Weeks Range:1.88 - 2.0252 Weeks Range:1.80 - 2.45Average Price Target:2.16Price Target Upside/Downside:+0.19

Strategy

Share Price of CapitalMall Trust has been trending up since beginning of January 2014. It closed at SGD$1.97 yesterday with total volume 12.6m traded. Based on the above, we expect a short term fluctuation of share price around SDG$1.90 to SGD$2.00. We expect a possible breakout in near term above SGD$2.05 with immediate resistance is at SGD$2.05, crossing this point will indicate a bullish rally. Immediate support is at SGD$1.915 and second immediate support is at SGD$1.815.

Short-term strategy: Accumulate around SGD$1.90 with short term target set at SGD$RM2.05 SGD$2.10. Medium/long-term strategy: Buy around SGD$2.05 SGD$2.10. Target set at SGD$2.34

April 24, 2014STC: Sandakan Branch [STC Market Update]Strictly For Internal Circulation Only

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