CapitaLand China Trust (AU8U) AI Stock Analysis

• Market Cap: S$1.19B
• Dividend Yield: 7.71%
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): 79.3
• Beta (1Y): 0.92
• Revenue Growth: -7.66%
• EPS Growth: -145.74%
• Country: SG
• Employees: 40,000
• Sector: Real Estate
• Sector Strength: 69
• Industry: REIT - Retail
• EPS (TTM): -0.01
• Shares Outstanding: 1,739,979,600
• 10 Day Avg. Volume: 1,599,060
• 30 Day Avg. Volume: 1,433,950
• 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$0.95
• Price Target Upside: 39.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: S$0.50 ▼(-26.47%Downside)

CapitaLand China Trust's overall stock score of 63.1 reflects solid cash flow and liquidity, tempered by declining revenues and profitability issues. The high dividend yield is a positive aspect, but the negative P/E ratio indicates profitability challenges. Technical indicators suggest a neutral market position, with neither strong upward nor downward pressure. The absence of earnings call data and significant corporate events leaves the financial performance as the dominant factor influencing 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.

Retail Performance

Retail continues to be the best performing asset-class with high occupancy of 98% maintained.

Tenant Sales

Retail malls seeing a recovery in tenant sales, boosted by AEIs, with shopper traffic and tenant sales surpassing pre-COVID levels.

Negative Factors

Currency Risks

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

New Economy Segments

CLCT continues to experience weakness in the new economy segments and a depreciating RMB against the SGD.

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 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
	EBIT
274.67M	206.15M	226.33M	303.28M	223.32M	32.97M
	EBITDA
214.06M	146.06M	218.94M	304.51M	224.69M	33.87M
	Net Income Common Stockholders
20.37M	-14.68M	40.83M	122.99M	106.68M	-12.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
247.83M	228.84M	243.46M	231.05M	288.86M	208.44M
	Total Assets
4.82B	4.72B	5.00B	5.23B	5.58B	4.31B
	Total Debt
1.85B	1.85B	1.95B	1.95B	2.00B	1.37B
	Net Debt
1.60B	1.62B	1.71B	1.72B	1.71B	1.16B
	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: Negative
• Last Price: 0.68
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 0.68 is below the 20-day moving average (MA) of 0.69, above the 50-day MA of 0.67, and below the 200-day MA of 0.70, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.13 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 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
AU8U	63 Neutral	S$1.19B	79.35	-0.91%	7.71%	-7.66%	-145.74%
Sector *	61 Neutral	$2.83B	10.72	0.40%	6.10%	5.80%	-21.26%
ADN		S$1.16B	12.84	4.50%	4.51%	―	―
CRPU	73 Outperform	S$797.25M	14.11	5.45%	9.22%	-3.56%	-10.89%
H13		S$1.33B	12.18	3.01%	1.99%	―	―
Q5T	65 Neutral	S$1.13B	24.14	2.51%	7.43%	0.84%	-64.42%
UD1U	56 Neutral	S$390.00M	31.18	1.60%	13.68%	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.

CapitaLand China Trust Issues Units for Management Fee Payment

CapitaLand China Trust Management Limited announced the issuance of 19,612,240 units in CapitaLand China Trust at an issue price of S$0.7077 per unit. This issuance includes units allocated for management fees for the year 2024, with a portion directed to Retail Crown Pte Ltd, a related entity. This move reflects the company’s adherence to its trust deed and IPO prospectus, potentially impacting its market positioning by maintaining transparency and aligning with shareholder interests.