CapitaLand China Trust (AU8U) AI Stock Analysis

• Market Cap: S$1.34B
• Dividend Yield: 6.66%
• Average Volume (3M): 2.51M
• Price to Earnings (P/E): 1283.3
• Beta (1Y): 0.87
• Revenue Growth: -8.59%
• EPS Growth: -93.48%
• Country: SG
• Employees: 40,000
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): N/A
• Shares Outstanding: 1,740,902,800
• 10 Day Avg. Volume: 1,999,940
• 30 Day Avg. Volume: 2,509,850
• PEG Ratio: 0.57
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 3.59
• P/FCF Ratio: 7.74
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$0.73
• Price Target Upside: -5.19% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: S$1.00 ▲(29.87% Upside)

CapitaLand China Trust's overall stock score is driven by stable financial performance and positive technical indicators, despite challenges in valuation and mixed earnings call sentiment. The company's operational efficiency and strong dividend yield are offset by concerns over revenue growth and high P/E ratio. The recent earnings call highlights both strategic achievements and ongoing challenges, particularly in revenue and occupancy rates.

Positive Factors

C-REIT Listing Success

The successful C-REIT listing enhances CLCT's market presence and provides a platform for future retail investments, indicating strong strategic execution.

Logistics Revenue Growth

Growth in logistics revenue reflects effective asset management and diversification, contributing to long-term income stability and resilience against sector-specific downturns.

Debt Management Improvements

Improved debt management reduces financial risk and enhances cash flow, providing greater flexibility for strategic investments and operational stability.

Negative Factors

Revenue Decline

A decline in revenue and NPI indicates challenges in maintaining income levels, potentially impacting financial performance and investor returns.

Business Parks Occupancy Challenges

Decreased occupancy in Business Parks suggests difficulties in leasing, which can affect revenue stability and increase operational costs.

Negative Retail Reversion Rates

Negative retail reversion rates indicate pressure on rental income, which could hinder revenue growth and affect long-term profitability.

CapitaLand China Trust Business Overview & Revenue Model

Company Description

CapitaLand 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 Money

CapitaLand China Trust generates revenue primarily through rental income from its portfolio of properties. The trust leases space to various tenants, including retail brands and corporate offices, which provides a steady stream of cash flow. Additionally, the trust benefits from periodic rent increases and long-term lease agreements, which help to secure stable income over time. Key revenue streams include base rents, additional rents based on tenant sales performance, and income from property management services. The trust also engages in strategic partnerships and joint ventures with local developers and other real estate entities to enhance its portfolio and capitalize on growth opportunities in the Chinese market, contributing to its overall earnings.

CapitaLand China Trust Financial Statement Overview

Summary

CapitaLand China Trust demonstrates operational efficiency with strong gross and EBIT margins, but faces challenges in revenue growth and net profitability. The balance sheet is stable with moderate leverage, yet profitability metrics like ROE are low. Cash flow generation shows mixed results, with effective cash conversion but declining growth. Overall, the company exhibits stability but needs to address growth and profitability concerns to enhance financial performance.

Income Statement

CapitaLand China Trust's income statement shows a mixed performance. The TTM data indicates a gross profit margin of 63.63% and an EBIT margin of 59.44%, which are strong indicators of operational efficiency. However, the net profit margin is low at 1.27%, reflecting challenges in translating revenue into net income. Revenue growth has been negative, with a decline of 2.05% in the TTM period, suggesting potential issues in maintaining sales momentum.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.95 in the TTM period, indicating moderate leverage. The equity ratio stands at 41.54%, showing a solid equity base. However, the return on equity is low at 0.21%, suggesting limited profitability relative to shareholder investment. The company maintains a balanced asset structure, but profitability remains a concern.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 1% in the TTM period, indicating challenges in generating cash. The operating cash flow to net income ratio is 0.53, suggesting moderate efficiency in converting income to cash. The free cash flow to net income ratio is strong at 0.99, indicating effective cash generation relative to net income, despite overall cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	327.79M	341.53M	364.75M	383.17M	377.97M	210.53M
Gross Profit	208.56M	208.74M	238.58M	256.35M	245.44M	136.22M
EBITDA	195.42M	146.06M	218.94M	242.42M	236.18M	127.53M
Net Income	4.17M	-14.68M	40.83M	122.99M	106.68M	-12.03M
Balance Sheet
Total Assets	4.61B	4.72B	5.00B	5.23B	5.58B	4.31B
Cash, Cash Equivalents and Short-Term Investments	240.87M	228.84M	243.46M	231.05M	288.86M	208.44M
Total Debt	1.82B	1.85B	1.95B	1.95B	2.00B	1.37B
Total Liabilities	2.42B	2.41B	2.58B	2.54B	2.62B	1.97B
Stockholders Equity	1.92B	2.03B	2.04B	2.41B	2.69B	2.34B
Cash Flow
Free Cash Flow	171.92M	158.54M	205.58M	143.30M	186.36M	51.44M
Operating Cash Flow	172.29M	175.79M	206.07M	182.08M	214.09M	78.57M
Investing Cash Flow	29.73M	85.15M	-5.63M	-43.96M	-533.42M	-192.23M
Financing Cash Flow	-197.39M	-275.85M	-177.99M	-173.51M	362.76M	179.66M

CapitaLand China Trust Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:AU8U, the sentiment is Negative. The current price of 0.77 is below the 20-day moving average (MA) of 0.78, below the 50-day MA of 0.79, and above the 200-day MA of 0.73, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 36.11 is Neutral, neither overbought nor oversold. The STOCH value of 23.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:AU8U.

CapitaLand China Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRPU	73 Outperform	S$850.64M	13.37	6.17%	8.87%	5.89%	1.81%
H13	69 Neutral	S$1.45B	9.66	4.10%	1.83%	-8.06%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AU8U	65 Neutral	S$1.34B	1,283.33	0.04%	6.66%	-8.59%	-93.48%
Q5T	65 Neutral	S$1.25B	34.66	1.92%	7.16%	-3.65%	-69.86%
UD1U	65 Neutral	S$390.00M	29.59	1.69%	8.37%	-11.29%	―
ADN	61 Neutral	S$1.16B	11.99	4.89%	4.51%	-6.67%	581.75%

CapitaLand China Trust Corporate Events

CapitaLand China Trust Issues Units for Divestment Fee

CapitaLand China Trust has announced the issuance of 923,238 units as payment for a divestment fee related to the sale of its equity interest in the Changsha ProjectCo to the newly established CapitaLand Commercial C-REIT on the Shanghai Stock Exchange. This transaction, part of a broader strategic move, reflects the trust’s ongoing efforts to optimize its portfolio and strengthen its market position in the infrastructure securities investment sector.

CapitaLand China Trust Announces Board Reshuffle

CapitaLand China Trust Management Limited announced significant changes to its board and committee composition effective November 1, 2025. Mr. Neo Poh Kiat and Mr. Tan Tze Wooi are retiring from their respective roles, while Mr. Chua Keng Kim and Mr. Liu Sing Cheong are appointed to new positions. These changes are expected to influence the strategic direction and governance of the trust, potentially impacting its operations and stakeholder relations.

CapitaLand China Trust’s New Facility Agreement Highlights Financial Stability Concerns

CapitaLand China Trust has entered into a facility agreement that includes a prepayment event clause, which could affect its financial obligations if triggered. The agreement, involving approximately S$1.6 billion in borrowings, underscores the importance of stable management for the trust’s financial stability.

CapitaLand China Trust Enters Facility Agreement with Prepayment Clause

CapitaLand China Trust Management Limited announced that HSBC Institutional Trust Services (Singapore) Limited, as trustee of CapitaLand China Trust, has entered into a facility agreement that includes a prepayment event clause. This clause could trigger cross defaults affecting approximately S$1.7 billion in borrowings if the trust ceases to be managed by its current manager or an approved successor. As of the announcement date, no prepayment event has occurred.

CapitaLand Investment Expands with China’s First International-Sponsored Retail C-REIT

CapitaLand Investment Limited has successfully listed CapitaLand Commercial C-REIT (CLCR), China’s first international-sponsored retail C-REIT, on the Shanghai Stock Exchange. This move strengthens CLI’s position in the Asia Pacific market and expands its REIT management platform into China. The IPO raised RMB2.29 billion, exceeding initial estimates, and is expected to yield a distribution of 4.40% for FY 2025. Additionally, CLI has closed its first sub-fund under the CLI RMB Master Fund, focusing on acquiring income-producing assets, with plans to launch a second sub-fund targeting retail assets later in 2025. These developments highlight CLI’s strategic focus on capital recycling and expanding its asset management footprint in China.

CapitaLand China Trust Issues S$150 Million in Perpetual Securities

CapitaLand China Trust has successfully issued S$150 million in fixed rate subordinated perpetual securities under its S$1 billion Multicurrency Debt Issuance Programme. The issuance was well-received, with a subscription coverage of approximately 3.4 times, and is expected to be listed on the SGX-ST on 22 September 2025. This strategic move reflects the company’s robust market positioning and its ability to attract significant investment from fund managers, insurance companies, and private bank investors.

CapitaLand China Trust Prices S$150 Million Perpetual Securities

CapitaLand China Trust has announced the pricing of its S$150 million fixed rate subordinated perpetual securities under its S$1 billion multicurrency debt issuance programme. Oversea-Chinese Banking Corporation Limited is the lead manager for this offering. The proceeds will be used for general corporate purposes, working capital, and refinancing existing borrowings. The perpetual securities, which have no fixed redemption date, will offer a distribution rate of 3.95% per annum until 2028, after which the rate will be reset every three years. This move is expected to bolster the trust’s financial flexibility and support its strategic initiatives in the Chinese market.