CapitaLand China Trust (AU8U) AI Stock Analysis

• Market Cap: S$1.37B
• Dividend Yield: 7.24%
• Average Volume (3M): 2.63M
• Price to Earnings (P/E): 79.3
• Beta (1Y): 0.95
• Revenue Growth: -7.66%
• EPS Growth: -145.74%
• Country: SG
• Employees: 40,000
• Sector: Real Estate
• Sector Strength: 66
• Industry: REIT - Retail
• EPS (TTM): N/A
• Shares Outstanding: 1,739,979,600
• 10 Day Avg. Volume: 2,987,090
• 30 Day Avg. Volume: 2,630,786
• PEG Ratio: -1.35
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.78
• 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: 0.00%
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 57 Neutral
• 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 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 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

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

CapitaLand China Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.78
• 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 0.78 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRPU	74 Outperform	S$847.47M	15.00	5.45%	11.02%	-3.56%	-10.89%
Q5T	65 Neutral	S$1.23B	26.29	2.51%	6.68%	0.84%	-64.42%
Sector *	64 Neutral	$6.87B	15.19	-1.99%	6.97%	4.50%	-23.97%
AU8U	57 Neutral	S$1.37B	79.35	-0.91%	7.24%	-7.66%	-145.74%
ADN	―	S$1.15B	12.72	4.50%	4.56%	―	―
H13	―	S$1.39B	12.67	3.01%	1.91%	―	―
UD1U	56 Neutral	S$416.90M	33.33	1.60%	37.25%	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.