Date: September 20, 2024
Broker Name: CGS International Securities Malaysia Sdn. Bhd.

Company Overview

CapitaLand Malaysia Trust (CLMT) is a real estate investment trust that focuses on retail and commercial properties in Malaysia. CLMT’s portfolio includes prominent shopping malls and other properties that provide rental income and capital appreciation for investors.

Upgrade to “Add” Rating

The rating for CapitaLand Malaysia Trust has been upgraded to “Add” from a previous rating, reflecting a positive outlook on the stock’s future performance. This upgrade is accompanied by an increase in the target price (TP) to RM0.80 based on a Dividend Discount Model (DDM).

Strong Growth Prospects

The stock is projected to achieve a 3-year earnings per unit (EPU) compound annual growth rate (CAGR) of 8.2% over the financial years 2023 to 2026. This growth is expected to be driven by incremental earnings from new assets and rental reversions, further enhancing the trust’s income-generating ability.

Dividend Yield and Capital Upside

• Implied FY25F Dividend Yield: 6.9%
• Capital Upside: 16.2%

These figures make CLMT an attractive investment opportunity for investors looking for both income and capital appreciation.

Transfer of Coverage

This report marks the transfer of coverage to analyst Lucas Tan, indicating a fresh perspective and reaffirming the positive outlook for CLMT in the coming years.

Investment Opportunities

With a higher TP and a strong dividend yield, CapitaLand Malaysia Trust is well-positioned to provide appealing investment opportunities, especially for investors seeking stable returns and growth in the Malaysian property sector.