OCBC Report 30 Oct 13

KEY IDEA CapitaMalls Asia: Chinese malls show underlying strength CMA reported 3Q13 PATMI of S$64.8m, which increased 4.0% YoY mainly due to profit recognition from Bedok Residences, the opening of Star Vista and a higher contribution from CMT. Adjusting for one-time items and fair value gains, 9M13 PATMI cumulates to S$179.2m, forming 93% of our full year FY13 PATMI forecast and we judge this quarter to be above expectations due to lower-than-anticipated opening costs from newly opened malls. CMA’s Chinese portfolio assets continue to put up firm numbers; the overall committed occupancy rate increased to 97.2% as at end Sep 13 from 96.9% as at end Jun 13. 9M13 tenant sales were also up a healthy 9.8% (excluding Tier 1 cities: 11.0%) while 9M13 shopper traffic increased 1.5%. We rate the stock with a BUY rating and an unchanged fair value estimate of S$2.55. (Eli Lee) MORE REPORTS CDL Hospitality Trusts: 3Q13 as expected CDLHT has reported 3Q13 results that are generally in-line with ours and the street’s expectations. 3Q13 revenue declined 0.8% YoY to S$35.9m. RevPAR for CDLHT’s Singapore hotels had declined 6.4% YoY, driven by a 5.6% drop in average room rate. As we had anticipated, the rate of RevPAR decline was less in 3Q13 than over 1H13, which saw RevPAR fall 8.1% on the back of increased supply in the sector. 3Q13 net property income fell 1.7% YoY to S$33.0m. 3Q13 DPU is 2.64 S cents (down 2.9% YoY), bringing 9M13 DPU to 8.05 S cents, versus ours and the street’s FY13 forecasts of 10.4 S cents and 11.1 S cents respectively. We maintain a BUYrating on CDLHT but place our S$1.83 fair value estimate under review. (Sarah Ong)

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NEWS HEADLINES - US stocks finished higher Tuesday with both blue-chip stocks and the S&P 500 index setting record closing highs, as results from Pfizer Inc. and an IBM stock buyback stoked momentum. - Figtree Holdings has priced its IPO on the Catalist board at 22 S cents per share in a S$12m fully placed share sale. - Sky One Holdings' collapse on Mon prompted a number of brokers to update their lists of restricted stocks this week. - Yanlord Land Group has paid 2.88b yuan (S$586m) for a site in Nanjing with a GFA of 38.6 ha, which it plans to develop as a mixed-use project. - Ezra’s subsea services and offshore support services divisions have secured contracts worth US$110m. - Great Eastern Holdings has reported growth in its core insurance business although the absence of year-ago one-time gains dragged its 3Q13 bottom-line down by 54%. - Forterra Trust sank to a net loss of S$2.3m for 3Q13 from a S$8.8m net profit a year ago. - Singapore has once again taken pole position for being the most business-friendly country for the eighth year, ahead of Hong Kong and New Zealand.