SGX Stocks and Warrants

Author: kimeng   |   Latest post: Fri, 16 Aug 2019, 9:48 AM


CapitaLand Limited: 2Q19 Results Below Expectations

Author:   |    Publish date:

CapitaLand reported its 2Q19 results which missed ours and the street’s expectations. Revenue declined 19.3% YoY to S$1,342.4m due largely to lower contributions from its residential projects in Singapore and China, but partially offset by contribution from acquisitions mainly from US and Europe.

PATMI fell 4.2% YoY to S$579.8m, due largely to the one-off transaction costs incurred on the acquisition of Ascendas-Singbridge (ASB). Excluding these, PATMI would have increased 1.7% YoY. Operating PATMI in 2Q19 came in at S$179.5m, a dip of 8.4% YoY and this accounted for 19.5% of our FY19 forecast.

For 1H19, CapitaLand’s revenue fell 21.6% to S$2,131.1m while operating PATMI slipped 14.9% to S$361.3m. The Group has continued to recycle its capital, with S$3.4b of divestments announced YTD (up till 6 Aug), and this has already exceeded its annual asset recycling target of S$3b.

Looking ahead, the 7.3k residential units with a value of RMB18.3b which were sold in China previously are expected to be handed over from 3Q19, of which ~50% of the value is expected to be recognised in 2H19.

We will provide more details after the analyst briefing. We currently have a BUY rating and S$4.04 fair value in CapitaLand.

Source: OCBC Research - 7 Aug 2019

Share this
Labels: CapitaLand

Related Stocks

Chart Stock Name Last Change Volume 
CapitaLand 3.40 -0.02 (0.58%) 7,467 

  Be the first to like this.


184  104  169  645 

Top 10 Active Counters
 YZJ Shipbldg SGD 0.99+0.13 
 LionGold 0.0010.00 
 ThaiBev 0.885-0.02 
 KLW 0.0040.00 
 ISR Capital^ 0.0030.00 
 Mapletree NAC Tr 1.33+0.04 
 SingTel 3.21-0.02 
 Seroja Inv^ 0.078+0.046 
 Genting Sing 0.875+0.005 
 Synagie 0.162+0.01 
Partners & Brokers