CapitaLand Investment - Maybank Research 2023-08-14: Headwinds, But Valuation Reasonable; Upgrade To BUY

CapitaLand Investment - Headwinds, But Valuation Reasonable; Upgrade To BUY

CapitaLand Investment (SGX:9CI) | SGinvestors.ioCapitaLand Investment (SGX:9CI)
  • We tactically upgrade CapitaLand Investment (SGX:9CI) to BUY from HOLD as we believe risk-reward is favourable.
  • While the deal making environment is difficult, the rebounding lodging business, steady stream of fees from an asset-light business model, supportive policy in China, plateauing interest rates and reasonable valuation (17% discount to RNAV, ~4% yield) makes us alter our stance.

1H23 results reflects prevalent operating conditions.

  • - Read this at -
  • Operating PATMI was stable y-o-y at S$344m, as operating gains were offset by lack of performance fees.
  • Key drivers faced crosswinds from challenging capital markets and a recovering lodging market.

Steady annuity fees amid cautious capital markets

  • - Read this at -
  • Property management fees were steady. Funds under management grew 1% h-o-h and 3% y-o-y to S$89b, with growth driven by private funds (+4% h-o-h and +12% y-o-y to S$29b). While fund commitments grew to S$10b, deployment remains slow.
  • 1H fee rate dipped to 45bps (-7bps y-o-y and -4bps vs FY22) and EBITDA margin for the fund management business fell to 47% vs 61% a year ago. Lower performance fees affected both.
  • CapitaLand Investment and an investor partner (50% stake) launched a second India Growth Fund with a focus on business parks and targets a fund size of S$525m (CapitaLand Investment likely to have 20% stake). The seed asset for the fund is a 70% stake in a Chennai business park from the sponsor.

Lodging business rebounding

  •

Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @

Krishna Guha Maybank Research | 2023-08-14

Previous report by Maybank:
2023-02-27 CapitaLand Investment - Fairly Valued; Downgrade To HOLD.

Price targets by 4 other brokers at CapitaLand Investment Target Prices.

Listing of research reports at CapitaLand Investment Analyst Reports.

Relevant links:
CapitaLand Investment Share Price History,
CapitaLand Investment Announcements,
CapitaLand Investment Dividends & Corporate Actions,
CapitaLand Investment News Articles


You May Also Like

SGX Stock / REIT Search


Most Read

Trust Bank God Of Fortune Referral Code PGKPSWAE Trust Bank Referral Code 🎁