CapitaMalls Asia: Interim dividend of 1.75c declared.

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.

Tea with Matthew Seah: POSB Invest-Saver Account.

POSB's newly launched Invest-Saver Account is a Regular Savings Plan that allows us to invest via a GIRO arrangement on a monthly basis.

No securities trading account or CDP account is required. 

All we need is a savings or current account with POSB.

It charges a flat fee of 1% per transaction.

For more information, go to:
POSB Invest-Save Account.
NEW LINK:  HERE.





My take? 

In a nutshell:

If we are putting aside between $100 to $500 a month, POSB Invest-Saver is a good choice.

If we are putting aside more than $500 a month, OCBC Blue Chip Investment Plan is a better choice.





See:
OCBC Blue Chip Investment Plan.