CapitaLand China Trust (AU8U) AI Stock Analysis

• Market Cap: S$1.25B
• Dividend Yield: 7.33%
• Average Volume (3M): 2.09M
• Price to Earnings (P/E): 79.3
• Beta (1Y): 0.94
• Revenue Growth: -7.66%
• EPS Growth: -145.74%
• Country: SG
• Employees: 40,000
• Sector: Real Estate
• Sector Strength: 52
• Industry: REIT - Retail
• EPS (TTM): N/A
• Shares Outstanding: 1,739,979,600
• 10 Day Avg. Volume: 2,734,600
• 30 Day Avg. Volume: 2,094,353
• PEG Ratio: 2.39
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.05
• 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$0.78
• Price Target Upside: 8.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 63 Neutral
• Price Target: S$0.50 ▼(-30.56%Downside)

CapitaLand China Trust's overall stock score reflects a mixed financial performance with solid cash flow but challenges from declining revenue and negative net income. Technical analysis indicates neutral momentum, while the valuation shows concerns due to a negative P/E ratio offset by a high dividend yield. The absence of new earnings call data or corporate events did not impact the score.

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.

Investment Management

Mr Gerry Chan, with his investment background, will be instrumental in guiding CLCT further in her portfolio rejuvenation journey.

Retail Performance

Retail segment continues to hold the fort for CLCT, with tenant sales and traffic surpassing pre-COVID levels.

Negative Factors

Currency Risk

Further softening of RMB against the SGD presents a risk for CLCT.

Forex Exchange Risks

Forex exchange risks as RMB hits a five-year high in its depreciation against the SGD.

New Economy Assets

Weakness in new economy assets poses a fundamental risk to CLCT.

CapitaLand China Trust Business Overview & Revenue Model

Company Description

CapitaLand China Trust (AU8U) is a leading real estate investment trust (REIT) listed on the Singapore Exchange Securities Trading Limited. It primarily focuses on investing in a diversified portfolio of income-producing real estate assets in China. The trust's core sectors include retail, commercial, and industrial properties, offering a range of services that cater to consumers and businesses. CapitaLand China Trust aims to provide sustainable returns to its unitholders through strategic asset management and acquisition initiatives.

How the Company Makes Money

CapitaLand China Trust generates revenue primarily through rental income derived from its portfolio of retail, commercial, and industrial properties. The trust leases space to a variety of tenants, including retailers, corporations, and logistics companies, which provides a steady stream of rental income. Additionally, the trust may engage in asset enhancement initiatives to increase property value and rental yields. Strategic acquisitions and divestments are also part of its revenue model, allowing the trust to optimize its portfolio and capitalize on market opportunities. Collaborations with local developers or property managers in China may further enhance the trust's earning potential through joint ventures or partnerships.

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	447.94M	341.53M	364.75M	383.17M	377.97M	210.53M
Gross Profit	281.34M	208.74M	238.58M	256.35M	252.57M	136.22M
EBITDA	214.06M	146.06M	218.94M	304.51M	224.69M	33.87M
Net Income	20.37M	-14.68M	40.83M	122.99M	106.68M	-12.03M
Balance Sheet
Total Assets	4.82B	4.72B	5.00B	5.23B	5.58B	4.31B
Cash, Cash Equivalents and Short-Term Investments	247.83M	228.84M	243.46M	231.05M	288.86M	208.44M
Total Debt	1.85B	1.85B	1.95B	1.95B	2.00B	1.37B
Total Liabilities	2.40B	2.41B	2.58B	2.54B	2.62B	1.97B
Stockholders Equity	2.13B	2.03B	2.04B	2.41B	2.69B	2.34B
Cash Flow
Free Cash Flow	193.10M	158.54M	174.81M	143.30M	186.36M	51.44M
Operating Cash Flow	193.68M	175.79M	206.07M	182.08M	214.09M	78.57M
Investing Cash Flow	111.54M	85.15M	-5.63M	-43.96M	-533.42M	-192.23M
Financing Cash Flow	-305.13M	-275.85M	-177.99M	-173.51M	366.13M	179.66M

CapitaLand China Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 0.72 is above the 20-day moving average (MA) of 0.69, above the 50-day MA of 0.69, and above the 200-day MA of 0.70, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 70.97 is Negative, neither overbought nor oversold. The STOCH value of 88.81 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRPU	74 Outperform	S$803.53M	14.22	5.45%	9.15%	-3.56%	-10.89%
Sector *	65 Neutral	$1.99B	17.55	2.40%	5.17%	-0.31%	5.93%
Q5T	65 Neutral	S$1.15B	24.57	2.51%	7.30%	0.84%	-64.42%
AU8U	63 Neutral	S$1.25B	79.35	-0.91%	7.33%	-7.66%	-145.74%
UD1U	56 Neutral	S$383.28M	30.65	1.60%	13.92%	16.79%	―

CapitaLand China Trust Corporate Events

CapitaLand China Trust Holds Annual General Meeting

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.

CapitaLand China Trust Announces CNH600 Million Note Issuance

CapitaLand China Trust has announced the pricing of CNH600,000,000 2.88% notes due 2028 under its S$1,000,000,000 Multicurrency Debt Issuance Programme. The notes, expected to be issued on April 17, 2025, will be used for general corporate purposes, investment, or refinancing existing borrowings. The issuance underscores the trust’s strategic financial management and could impact its debt structure and stakeholder interests, particularly if any managerial changes occur, which could trigger cross defaults.