STOCKS NEWS SINGAPORE-CapitaLand up after strong Q1 result

Mon Apr 29, 2013 12:15am EDT

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CapitaLand Ltd shares rose for the fourth session in a row, to the highest in nearly two months, after the biggest property developer in Southeast Asia reported a 41 percent rise in first-quarter net profit.

CapitaLand shares jumped as much as 3.3 percent to S$3.77, the highest since March 7. More than 13 million shares were traded, 1.1 times the average full-day volume over the past 30 days. It was the top traded stock by value in the Singapore market on Monday.

CapitaLand posted net profit of S$188.2 million ($152.2 million) for the three months ended March, up 41.2 percent from a year earlier, lifted by strong home sales in Singapore and China as well as contribution from its shopping mall arm.

CapitaLand's sharpened focus on Singapore and China is likely to underpin its growth, Maybank Kim Eng said, adding that the company is ramping up sales to meet homebuyers' demand and it also has a healthy pipeline of projects.

The broker said with a net gearing of 0.44 times and S$5.4 billion in cash, CapitaLand remains well-capitalised to capture growth opportunities. A possible sale of its stake in Australand Property Group could also return more capital, it said.

Maybank raised its target price on the stock to S$4.33 from S$4.30 and maintained its 'buy' rating.

1207 (0407 GMT)

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