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CapitaMalls Asia: Interim dividend of 1.75c declared.

Wednesday, July 24, 2013

CapitaMalls Asia is slowly and steadily improving its EPS and increasing its DPS. The latest results are encouraging and affirmed my conviction that this stock is going to be worth much more in a few years' time.

1H 2013 EPS: 8.2 c
1H 2013 DPS: 1.75c

Payout ratio: 21.34%.

The company's malls in China show a high percentage growth in NPI of 12.1% while malls in Singapore only registered a 2% NPI growth, reflecting the mature market here. The company's strategy of being in China and being there early is paying off nicely.

CapitaMalls Asia owns real estate and I would like to buy at a discount to the net value of its assets, if possible. The number to look at? Its NTA/share of $1.78.

Of course, paying a bit more for professional managers and also growth that seems to be in the bag is not an unreasonable proposition. In fact, at $2.00, some might say that it is hardly expensive. Indeed, annualising its 1H 2013 EPS would mean a PER of 12.2x. Fair? I think so.

After all, we have to remember that CapitaMalls Asia is not only a developer and owner of malls, it also derives a significant portion of its income from REITs in the family. This income stream is recurring and dependable.

However, I am also corrupted by TA and it is clear that the stock is in a downtrend which started in February 2013. That was also the last time I blogged about the stock. Resistance for the week is at $2.04.

Weekly chart.

If resistance at $2.04 could be overcome convincingly (i.e. with high volume), then, the downtrend would have been broken and exciting times could be in store for fellow shareholders of CapitaMalls Asia.

If things turn out to be less than exciting, well, I will be sure to dip into my war chests to accumulate at prices closer to or below NTA/share.

See presentation: here.

Related post:
CapitaMalls Asia: Reduced exposure.


AK71 said...

CapitaMalls Asia reported a profit after tax and minority interest (PATMI) of S$245.6 million in the second quarter of 2013.

This marked a 5.9 per cent growth over the previous year.

According to CapitaMalls Asia, its improved profitability was due to contributions from new malls, asset enhancement initiatives and acquisitions of stakes in four Japan malls in 2012, as well as profit recognition for units sold in Bedok Residences.

CapitaMalls Asia declared an interim dividend of 1.75 Singapore cents per share, 7.7 per cent higher than last year's interim dividend of 1.625 Singapore cents.

Its CEO, Lim Beng Chee, said the company will continue to pursue selective acquisitions in Singapore, Malaysia and China as well as other opportunities for good returns.

Source: CNA

AK71 said...

Shares in CapitaMalls Asia (CMA) gained 2.8%, supported by positive broker comments after the shopping mall developer reported a 41% jump in quarterly operating profit after tax and minority interests.

CIMB highlighted an improvement in CMA's operating margins and firm rents at the company's existing and new malls. "We expect further operational improvements to drive its share price," it said.

CMA shares have taken a beating over the past few months on worries of a credit crunch in China, a country that accounted for 44% of its revenue last year. "CMA has been aggressive in acquisitions, but is now focusing more on execution and improving yields," CIMB said.

Source: The EDGE

Garfield75 said...

Ak, Mr Lim knows the numbers on his finger tips. You should go attend one of CMA's AGM, this man is in love with the Company.

AK71 said...

Hi Garfield,

Really? Well, I think he probably has good reasons to be in love with the company. LOL.

It is hard for me to find the time to attend AGMs, unfortunately. :(

Garfield75 said...

Oh, btw, the picture u post is an asset under CCT, not CMA;)

AK71 said...

Hi Garfield,

Shhhhh.... I am too lazy to go looking for photos lah. ;p

AK71 said...

The Group’s balance sheet remains solid with net debt to equity ratio of 24%, down from 26% in 1Q13.

Looking ahead, management guided that the opening of CapitaMall Tianfu would be delayed from the end of 2013 to third quarter next year.

Nevertheless, we hold the conviction that the firm would be able to execute its mall ramp-up strategy over the long term, with 4 malls due to open in 2014 and 13 malls targeted to open in 2015 (as opposed to 3 malls this year).


Garfield75 said...


must be careful where there r a lot of sub JV within the group there may be an issue of double or triple gearing, investment less than 50% is usually equity accounted for as a result, debts on these cos are not reflected on the books... Thus, give an impression of a low gearing.

Austerity drive failed again today....bought wine and finished more than half a lots of junk from Korea supermarket....Ak, you are my 偶像,when come to savings... I am in a constant losing battle;(

AK71 said...

Hi Garfield,

That is a good point on sub JVs. If the company's stakes are small enough, they will not be reflected. Good material for a guest post? ;p

If you do not own a car like I do, I think you can cut yourself more slack. See? With a car, I have become an extravagant spender. Sob.

David & Thi said...

Hi AK71,

I am into Capitaland for short term trade at $3.19 with SL at $3.09 and TP: $3.40.

Solely based on Technical Analysis. Market seem to have hit bottom at $2.99 and my 8/21 EMA has crossed up.

AK71 said...

Hi Yee,

Although I have made some money trading CapitaLand's stock before, I am not a very good trader, not now anyway. I cannot give undivided attention and I also need to build discipline.

Hope you make good money in this trade. :)

Garfield75 said...


You are very funny leh, how to write a post on double and triple gearing....I have no flair in writing like you.

I don't own a car...but I like to take cab...haha...not helping in austerity drive.

AK71 said...

Hi Garfield,

Well, owning a car has provided me with even more drive towards austerity. Now, something doesn't make sense here. Hmmm...

If you were to take a cab to work everyday, you would still spend less money compared to having a car. So, if you think of it this way, your austerity drive is on course. All a matter of perspective. ;p

Garfield75 said...


Taking bus is cheaper...which is still the preferred mode in view of the austerity drive....just that got to bear with the waiting time and the hassle of changing buses...

AK71 said...

Hi Garfield,

Bus stops are also warm, dusty, noisy, crowded.... Ah, I am doing this wrong. Kidding. ;p

Yes, for sure. Take the bus and the MRT. Avoid taking taxis and we will save a bundle.

Maybe, to instil more discipline into your austerity drive (like for reporter Jonathan Kwok recently), you might want to set for yourself certain targets and blog about it after a month? ;p

Garfield75 said...

Ak 71,

Yes, waiting time aside...I hate the dust and noise at the bus stop.

No rigid target preferred cos like that very stressful leh, but I just hope to keep spending btw S$1k - S$1.5k per month.

AK71 said...

Hi Garfield,

Jonathan Kwok gave himself $35 a day. I think that is pretty realistic as it works out to be $1,050 a month.

I had an austerity drive donkey years ago when I first started working as well. I gave myself $10 a day back then!

A friend described it as "abject poverty"! Hahahaha... :)

OK, gambatte!

AK71 said...

CMA said its earnings per share for the quarter rose to 1.7 Singapore cents, up from 1.6 Singapore cents in the previous year.

For the third quarter ended September 30, the firm’s earnings before interest and tax (EBIT) was up slightly by 3.6 per cent to S$89.5 million, compared to a year ago.

CMA said the increase was largely due to the profit recognition for units sold in Bedok Residences, opening of The Star Vista and higher contribution from CapitaMall Trust mainly arising from a mall which resumed full operations after major asset enhancements.

AK71 said...

CapitaMalls Asia's board has proposed a final dividend of 1.75c per share for fiscal 2013, taking the total dividend for the financial year to 3.5c, 7.7% higher than a year earlier.

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