Date of Report

October 1, 2024

Broker Name

UOB Kay Hian

Company Overview

CapitaLand Investment is a leading real estate investment and development company based in Singapore. The company has a diverse portfolio that spans residential, commercial, retail, and industrial properties across various markets, with significant exposure to China.

Recent Developments

The report highlights the recent announcement by the Chinese government of robust stimulus measures designed to revitalize its economy. These initiatives are expected to have a positive impact on the real estate sector, benefiting companies like CapitaLand with substantial investments in the Chinese market.

Revenue Exposure to China

CapitaLand has meaningful revenue exposure to China, making it well-positioned to benefit from the anticipated recovery in the property market as a result of the government’s economic stimulus. The company operates numerous properties in China, which are likely to see increased demand and improved occupancy rates as consumer confidence rises.

Investment Recommendation

• Recommendation: BUY
• Current Price (S$): 3.12
• Target Price (S$): 4.04
• Potential Upside (%): 29.5%

Market Context

With the expected increase in government spending on infrastructure and housing as part of the stimulus measures, CapitaLand is poised to benefit from enhanced demand for its real estate offerings. The company’s strategic asset management and development capabilities position it favorably to capitalize on these opportunities.

Conclusion

CapitaLand Investment’s strong positioning in the real estate market and significant exposure to the revitalizing Chinese economy make it an attractive investment opportunity. The anticipated growth in demand for properties, driven by government initiatives, places CapitaLand in a prime position for substantial growth in the coming years.