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CapitaLand China Trust (SG:AU8U)
SGX:AU8U
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CapitaLand China Trust (AU8U) AI Stock Analysis

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SG:AU8U

CapitaLand China Trust

(SGX:AU8U)

Rating:57Neutral
Price Target:
S$1.00
▲(28.21%Upside)
CapitaLand China Trust's overall stock score is influenced primarily by its financial performance and technical analysis. Strong liquidity and cash flow are positive, but negative net income and declining revenue are significant concerns. The technical indicators suggest potential for a short-term pullback despite recent positive momentum. The valuation score is impacted by negative earnings, although a high dividend yield offers some investor appeal.
Positive Factors
Economic Recovery
CLCT is a quality proxy to a turnaround in China's economic environment as China rolls out stimulus measures to stabilize the property market.
Retail Performance
Retail segment continues to hold the fort for CLCT, with tenant sales and traffic surpassing pre-COVID levels.
Negative Factors
Forex Risk
Further softening of RMB against the SGD presents a risk for CLCT.
New Economy Weakness
Weakness in new economy assets poses a fundamental risk to CLCT.

CapitaLand China Trust (AU8U) vs. iShares MSCI Singapore ETF (EWS)

CapitaLand China Trust Business Overview & Revenue Model

Company DescriptionCapitaLand China Trust (CLCT), formerly known as CapitaLand Retail China Trust, is Singapore's largest China-focused real estate investment trust (REIT). Upon completion of the transformational acquisition of five business parks and balance 49% interest in Rock Square, CLCT's enlarged portfolio will comprise of 13 shopping malls and five business park properties. The geographically diversified portfolio has a total gross floor area (GFA) of approximately 1.8 million square metre (sq m), located across 11 leading Chinese cities. CLCT was listed on the Singapore Exchange Securities Trading Limited (SGX-ST) on 8 December 2006, and established with the objective of investing on a long-term basis in a diversified portfolio of income-producing real estate and real estate-related assets in mainland China, Hong Kong and Macau that are used primarily for retail, office and industrial purposes (including business parks, logistics facilities, data centres and integrated developments). CLCT's retail properties are strategically located in densely populated areas with good connectivity to public transport. The malls are positioned as one-stop family-oriented destinations housing a wide range of lifestyle offerings that cater to varied consumer preferences in shopping, dining and entertainment as well as essential services. CLCT's portfolio comprises a diverse mix of more than 2,000 leases, which include leading brands UNIQLO, Xiaomi, ZARA, Haidilao, Nike, Sephora, Starbucks Coffee and Swarovski. The malls are CapitaMall Xizhimen, CapitaMall Wangjing, CapitaMall Grand Canyon and CapitaMall Shuangjing in Beijing; Rock Square in Guangzhou; CapitaMall Xinnan in Chengdu; CapitaMall Qibao in Shanghai; CapitaMall Minzhongleyuan in Wuhan; CapitaMall Saihan and CapitaMall Nuohemule in Hohhot; CapitaMall Xuefu, CapitaMall Aidemengdun in Harbin and CapitaMall Yuhuating in Changsha. CLCT has a portfolio of five business parks situated in high-growth economic zones which house high quality and reputable domestic and multinational corporations operating in new economy sectors such as Electronics, Engineering, E-Commerce, Information and Communications Technology and Financial Services. The business parks exhibit excellent connectivity with close proximity to transportation hubs, and are easily accessible via various modes of transportation. The properties are Ascendas Xinsu Portfolio in Suzhou, Ascendas Innovation Towers and Ascendas Innovation Hub in Xi'an and Singapore-Hangzhou Science & Technology Park Phase I and Phase II in Hangzhou. CLCT is managed by CapitaLand China Trust Management Limited, a wholly owned subsidiary of Singapore-listed CapitaLand Limited, one of Asia's largest diversified real estate groups.
How the Company Makes MoneyCapitaLand China Trust generates revenue primarily through the rental income derived from its portfolio of retail, office, and industrial properties in China. The trust leases its properties to a variety of tenants, including retail brands, corporate offices, and industrial operators, ensuring a diversified and stable income stream. Additionally, CapitaLand China Trust benefits from strategic partnerships and alliances with key players in the real estate industry, which enable it to optimize property management and enhance property value. The trust also engages in proactive asset enhancement initiatives to improve the performance of its properties, potentially increasing rental income and property value over time.

CapitaLand China Trust Financial Statement Overview

Summary
CapitaLand China Trust shows mixed financial health with robust cash flow and strong equity ratio, ensuring liquidity. However, declining revenue, negative net income, and high debt-to-equity ratio pose risks. While the company manages operational costs effectively, the recent net loss and revenue decline highlight challenges in sustaining growth. Strategic adjustments may be needed to improve profitability and reduce debt reliance.
Income Statement
62
Positive
CapitaLand China Trust's income statement reveals fluctuating revenues with a decline in 2024 to $341.5M from $364.7M in 2023, indicating a revenue growth rate of -6.37%. The gross profit margin stands at 61.12%, showing efficiency in managing direct costs. However, the net profit margin turned negative at -4.30%, a significant decline from 11.19% in 2023, due to a net loss of $14.7M. This negative net income impacts overall profitability despite stable EBITDA margins of 42.78%. The absence of EBIT in 2024 indicates a possible re-evaluation of operational costs.
Balance Sheet
68
Positive
The balance sheet exhibits a solid equity ratio of 42.89% for 2024, reflecting a stable financial structure. However, the debt-to-equity ratio is high at 0.91, showing reliance on debt financing which could be risky. Return on equity dropped significantly turning negative due to net losses, impacting the attractiveness to investors. The company maintains substantial cash reserves, which is positive for liquidity.
Cash Flow
75
Positive
The cash flow statement indicates positive operational cash flow of $175.8M in 2024, although it decreased from $206.1M in 2023. Free cash flow is robust at $158.5M, ensuring the company can cover its investments and dividends. The free cash flow to net income ratio is high, reflecting strong cash generation despite net losses. The declining operating cash flow to net income ratio indicates potential issues in converting income to cash.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue341.53M364.75M383.17M377.97M210.53M
Gross Profit208.74M238.58M256.35M252.57M136.22M
EBITDA146.06M218.94M304.51M224.69M33.87M
Net Income-14.68M40.83M122.99M106.68M-12.03M
Balance Sheet
Total Assets4.72B5.00B5.23B5.58B4.31B
Cash, Cash Equivalents and Short-Term Investments228.84M243.46M231.05M288.86M208.44M
Total Debt1.85B1.95B1.95B2.00B1.37B
Total Liabilities2.41B2.58B2.54B2.62B1.97B
Stockholders Equity2.03B2.04B2.41B2.69B2.34B
Cash Flow
Free Cash Flow158.54M174.81M143.30M186.36M51.44M
Operating Cash Flow175.79M206.07M182.08M214.09M78.57M
Investing Cash Flow85.15M-5.63M-43.96M-533.42M-192.23M
Financing Cash Flow-275.85M-177.99M-173.51M366.13M179.66M

CapitaLand China Trust Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.78
Price Trends
50DMA
0.71
Positive
100DMA
0.69
Positive
200DMA
0.70
Positive
Market Momentum
MACD
0.02
Negative
RSI
72.95
Negative
STOCH
82.78
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:AU8U, the sentiment is Positive. The current price of 0.78 is above the 20-day moving average (MA) of 0.75, above the 50-day MA of 0.71, and above the 200-day MA of 0.70, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 72.95 is Negative, neither overbought nor oversold. The STOCH value of 82.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:AU8U.

CapitaLand China Trust Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
S$847.47M15.005.45%11.02%-3.56%-10.89%
65
Neutral
S$1.23B26.292.51%6.68%0.84%-64.42%
64
Neutral
$6.87B15.19-1.99%6.97%4.50%-23.97%
57
Neutral
S$1.37B79.35-0.91%7.24%-7.66%-145.74%
S$1.15B12.724.50%4.56%
S$1.39B12.673.01%1.91%
56
Neutral
S$416.90M33.331.60%37.25%16.79%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SG:AU8U
CapitaLand China Trust
0.78
0.16
25.81%
SG:ADN
First Sponsor Group Ltd
1.05
0.02
1.94%
SG:CRPU
Sasseur Real Estate Investment Trust
0.68
0.07
11.48%
SG:H13
Ho Bee Land Limited
2.16
0.35
19.34%
SG:Q5T
Far East Hospitality Trust
0.60
0.01
1.69%
SG:UD1U
IREIT Global
0.30
0.03
11.11%

CapitaLand China Trust Corporate Events

CapitaLand China Trust Holds Annual General Meeting
May 20, 2025

CapitaLand China Trust (CLCT) held its Annual General Meeting on April 21, 2025, at Marina Bay Sands Expo and Convention Centre in Singapore. The meeting was attended by unitholders, proxies, directors, and management team members. The gathering focused on the company’s strategic direction and operational performance, with key insights shared by the board and management. This meeting is crucial for stakeholders as it provides transparency and updates on the trust’s governance and future plans.

The most recent analyst rating on (SG:AU8U) stock is a Hold with a S$0.85 price target. To see the full list of analyst forecasts on CapitaLand China Trust stock, see the SG:AU8U Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 17, 2025