As CapitaLand reported its results for the 1HFY2021 ended June, analysts from CGS-CIMB Research and OCBC Investment Research have maintained their “add” and “hold” calls respectively.
The property group’s earnings of $922.2 million stood broadly within expectations of both brokerages.
CGS-CIMB analyst Lock Mun Yee has kept her target price unchanged at $4.04. She has also maintained her current earnings estimates pending the formation of the new entity, CapitaLand Investment.
On Aug 10, CapitaLand announced that it received its shareholders’ approval for its proposed restructuring.
The court hearing to approve the application and sanction the scheme is expected to take place on Aug 30.
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Upon approval, shares in CapitaLand will be suspended from trading on Sept 6. The listing date of its new entity will take place on Sept 16.
“Our current revalued net asset value (RNAV) stands at $6.22,” writes Lock.
The team at OCBC Investment Research has increased its fair value estimate to $4.24 from $4.03, including an environmental, social and governance (ESG) premium.
“CapitaLand leads its peers in the adoption of strong sustainability programmes, in particular to governance. It also has a majority independent board and an independent Chairman to support oversight of management,” writes the team in an Aug 16 report.
Like CGS-CIMB’s Lock, the OCBC team says it looks forward to CapitaLand’s new beginnings and are “positive on the asset-light business model”.
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As at 2.13pm, shares in CapitaLand are trading 7 cents lower or 1.7% down at $3.98, representing an FY2021 P/NAV of 0.9 times and a dividend yield of 2.4%, according to OCBC’s estimates.
Photo: CapitaLand
