CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Are CapitaLand shares worth buying now?

After real estate giant CapitaLand reported robust half-year results, all eyes are now on its impending restructuring.

  • CapitaLand (SGX: C31) shares hit S$4.07 per share on Tuesday (24 August)
  • Its asset-light business CapitaLand Investment will start trading next month
  • Asset divestments could provide near-term catalysts, said Citi analysts
  • Keen to trade CapitaLand shares? Open an account with us to get started.

CapitaLand stock makes further gains

Singapore-listed property developer and investor CapitaLand’s (CAPL) stock ticked up by 0.3% to trade at S$4.07 as of 12:27 SGT on Tuesday. About 3.3 million shares changed hands by then.

As of Monday night, 11 analysts recommended ‘buy’ on CapitaLand shares, four rated ‘hold’, and none said to ‘sell’. Their average 12-month target price was S$4.42, Bloomberg data showed.

Bullish research teams included Macquarie with an ‘outperform’ call and S$4.95 target, and Morgan Stanley with an ‘overweight/attractive’ rating alongside a S$4.75 target. Credit Suisse, UOB and Morningstar were among those with ‘hold’ or ‘neutral’ recommendations.

New asset-light entity to be listed in mid-September

Once the court approves the group's proposed restructuring, CAPL shares will be suspended on 06 September 2021.

The new entity, CapitaLand Investment, will then be listed and start trading on 16 September 2021.

OCBC Investment Research noted that CapitaLand Investment would operate with an asset-light business model with a strong focus on recurring income streams.

Citi analyst Brandon Lee expects CapitaLand’s share price to stay firm ahead of the restructuring’s completion in mid-September.

Near-term catalysts for the stock include potential acquisitions of strategic platforms, asset divestments, and tangible growth of funds under management, said Lee, as he maintained ‘buy’ with a S$4.35 price target.

Citi’s research team also opined that the real estate group’s first-half results showed ‘encouraging signs of key drivers underpinning CapitaLand Investment’s operational performance’.

RHB analysts, naming CAPL one of their top ‘buy’ ideas with a S$4.40 target, expect the group’s investment portfolio to see an earnings boost from Singapore’s economic reopening and easing of restrictions.

Start trading CapitaLand shares today

Go long or short with CFDs on 16,000+ shares with our award-winning platform.* Perfect your technique with S$200,000 worth of virtual funds in your free demo account. Create a free demo account here.

* Based on the Investment Trends 2018 Singapore CFD & FX Report based on a survey of over 4,500 traders and investors. Awarded the Best Online Trading Platform by Influential Brands in 2020. Awarded the best retail FX provider for Asia by FX Markets in 2020

CapitaLand’s H1 2021 profit soars

Earlier this month, CapitaLand reported that its revenue improved 35% year-on-year to S$2.73 billion for H1 2021.

Profit after tax and minority interests (PATMI) surged more than 850% to S$922.2 million, from S$96.6 million a year ago, amid higher portfolio gains and lower revaluation loss. This was driven by nascent economic recovery of its two core markets, Singapore and China.

Funds under management for Q2 2021 grew 5% quarter-on-quarter to S$83 billion.

CapitaLand said it foresees an uneven pace of recovery across its geographies and sectors, due to the pandemic’s unpredictability and varied progress of global inoculation.

OCBC analysts, recommending ‘hold’ with a fair value of S$4.24, believe the group’s strong balance sheet and diversified portfolio puts it in a better position to drive a recovery, while capital recycling activities are likely to ‘resume in a more meaningful way’.

CGS-CIMB, reiterating ‘add’ and a S$4.04 target, said the robust fee income and increasing contributions from recurring sources, such as investment properties, should drive growth.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.