SGX Stocks and Warrants

Author: kimeng   |   Latest post: Fri, 6 Dec 2019, 4:05 PM


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 3.68 -0.03 (0.81%) 8,978 

  Be the first to like this.


135  132  161  675 

Top 10 Active Counters
 Rex Intl 0.186+0.007 
 Golden Agri-Res 0.220.00 
 YZJ Shipbldg SGD 1.13+0.04 
 Artivision Tech 0.003-0.001 
 Ascendas Reit 2.91-0.08 
 CapitaMall Trust 2.42-0.04 
 Genting Sing 0.93-0.005 
 ThaiBev 0.92+0.01 
 Mapletree Com Tr 2.26-0.02 
 SingTel 3.390.00 
Partners & Brokers