CapitaMalls Asia says it has entered into an agreement with Chengdu Vanke Property Co. to acquire Meili Mall in Chengdu, China, for RMB459.85 million ($94.6 million). Including fitting out works, CapitaMalls Asia’s estimated total expenditure on the mall is RMB520 million.
The mall is part of a mixed-use development, comprising retail and residential components. It is currently being developed by Chengdu Vanke Property and expected to be completed by 2012. The target opening date is mid-2013.
Singapore Airlines (SIA) may see unusual trading volume today after it posted a 19.7% rise in quarterly profit to $403.7 million, rebounding from two straight quarters of losses. US stocks rallied for a second day last night as better-than-expected earnings and encouraging data calmed investors after the market’s recent sell-off. The Straits Times Index (.FTSTI) fell 0.56% to close at 2,720.87 points last night.
Singapore Airlines (SIAL.SI) is on course to avert a full-year loss as a recovery in passenger and cargo demand helped it report its best quarterly profit in almost two years.
CapitaMalls Asia says it has posted profit after tax and minority interests (PATMI) of S$388 million for FY2009, in its first reported results since its listing on Nov 25.
Earnings before interest and tax (EBIT) were $521 million for FY2009, 74% higher than the $300 million for FY2008. Revenue under management was $1,615 million for FY2009, 50% higher than the $1,078 million for FY2008.
CapitaMalls Asia (JS8.SG) rose 3.8% to $2.45 this morning on strong volume of more than 43 million shares, the most active on the SGX.
CapitaMalls Asia’s share price hit its highest level since Nov 25 debut on delayed reaction to news of stock’s inclusion in MSCI Singapore Index, says Dow Jones Newswires.
According to Nov 25 announcement on MSCI Barra website, CMA will be added to index from Dec 10, the report says.
CIMB in a Nov 25 research report says: “CMA owns and/or manages 50 retail malls in China. We initiate coverage on CMA with outperform and a target price set on par with our RNAV estimate of $2.77. This implies 31% upside from its IPO price of $2.12. The IPO has, in our view, unleashed a pan-Asia retail mall behemoth with strong debt and capital market capacity to execute asset recycling.
Shares of CapitaMalls Asia (CMAL.SI) opened 8.5% higher today, boosted by strong demand from investors keen on gaining exposure to China’s fast-growing consumer market.
At 9:01 a.m., CapitaMalls was traded at $2.28 compared with its initial public offering price of $2.12 a share. It opened at $2.30.
The IPO of CapitaLand’s (CATL.SI) malls unit was 1.7 times oversubscribed, the company said late yesterday.
Singapore’s benchmark stock index, the Straits Times Index, rose 0.36% at 9:05 a.m.
The index of 30 companies traded on Singapore Exchange Ltd. rose 10.09 to 2,790.07. Among the stocks in the index, 14 rose, 5 fell and 11 were unchanged.
Gains in the Straits Times Index were led by DBS Group Holdings, United Overseas Bank and CapitaLand. About 62.31 million shares changed hands in Singapore.
Capitamalls Asia, which rose 16 cents or 8.5% to $2.28, was the most active stock by value in Singapore.
The next most-active issues were Singapore Airlines, which was unchanged at $13.78, and DBS Group Holdings, which rose 16 cents to $14.98.
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The following companies may have unusual price changes in trading today, say Bloomberg and Thomson Reuters. Share prices are from the previous close. Singapore’s Straits Times Index fell 0.6% to 2,779.98.
Asian stocks may extend losses today after US data showed slower than expected growth, but markets could find some support after the Federal Reserve raised its expectations for US growth in 2010.
CapitaLand says its IPO of CapitaMalls Asia at $2.12 each share saw strong demand by both institutional and retail investors.
The public offer (excluding the reserved shares) of 95 million offering shares was 4.9 times subscribed. It attracted application monies amounting to $988.5 million from 44,507 valid applications at the close of the public offer at 12 noon yesterday.
