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.