This research house really follow the financial results, if Good upgrade, if Bad downgrade.

Can they foresee before that not wait after the results out???

RHB Research upgrades CMMT to Neutral from Sell

KUALA LUMPUR: RHB Research has upgraded CapitaMalls Malaysia Trust (CMMT) to Neutral from Sell with a target price of RM1.42 from RM1.35 after increasing its FY14 DPU estimate marginally by 1% and rolling over its valuations to FY14.

“We believe that all negative news has now been priced in. CMMT currently trades at a decent net yield of about 6%, and the completion of ECM’s enhancement could lead to potential earnings upside,” it said.

In a note on Friday, it said CMMT’s 4QFY13 net profit of RM38.6mil brought full-year net profit to RM148.5mil.

“FY13 revenue growth was attributed to the positive rental reversion as well as income from the on-selling of electricity to tenants at The Mines.

“Overall rental reversion was still healthy at 7.5%, despite Sungei Wang Plaza (SWP)’s negative reversion of 3.7%. Overall portfolio occupancy was stable at 99%,” it said.

RHB said CMMT believes that its growth is still on track, underpinned by healthy rental reversion and ECM’s major refurbishment.

It said CMMT plans to spend a total of RM80mil capex in FY14, mainly to complete ECM’s refurbishment, which is expected to yield an 8% ROI annually upon completion in 4Q14.