China and Vietnam will drive growth for this property group

SINGAPORE (Dec 1): CIMB is maintaining its “add” recommendation and target price of $4.17 on CapitaLand after observing healthy demand at the group’s projects in Guangzhou, Shenzhen and Vietnam.

CIMB’s analyst Lock Mun Yee noted that the group has been successful in ramping up its property launches ahead of new housing restrictions that are expected to be implemented in 4QFY16. To date, the group has secured RMB14 billion ($2.9 billion) of sales, and 40% of that will be recognised as early as 4QFY16.

Looking ahead, the group also has an urban renewal project in the pipeline, known as the Datansha Island project, which will have 2 million sf of gross floor area.

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