CapitaLand Mall (C38U) AI Stock Analysis

• Market Cap: S$17.73B
• Dividend Yield: 5.35%
• Average Volume (3M): 22.32M
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.38
• Revenue Growth: 0.17%
• EPS Growth: 8.05%
• Country: SG
• Employees: 646
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): N/A
• Shares Outstanding: 7,611,318,000
• 10 Day Avg. Volume: 19,666,921
• 30 Day Avg. Volume: 22,315,350
• PEG Ratio: 1.84
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 8.35
• P/FCF Ratio: 15.31
• 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$2.55
• Price Target Upside: 10.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: S$2.50 ▲(7.76% Upside)

CapitaLand Mall's overall stock score reflects strong financial performance and a positive earnings call, despite challenges in revenue growth and increased gearing. The valuation is fair with an attractive dividend yield, and technical indicators suggest stability. The most significant factors are the robust profitability and successful financing efforts, which support a cautiously optimistic outlook.

Positive Factors

Strong Profit Margins

CapitaLand Mall's strong profit margins indicate efficient cost management and operational effectiveness, supporting long-term profitability.

Successful Financing

Securing low-cost financing enhances financial flexibility, allowing for strategic investments and growth opportunities.

Positive Retail Trends

Improving retail trends and rental reversions suggest strong tenant demand and potential for sustained revenue growth.

Negative Factors

Increased Gearing

Higher gearing levels may limit financial flexibility and increase risk, potentially impacting future investment capacity.

Declining Revenue Growth

A decline in revenue growth could indicate challenges in market expansion and tenant acquisition, affecting long-term growth prospects.

Integrated Development Occupancy Decline

Occupancy declines in key developments may signal tenant retention challenges, potentially impacting revenue stability.

CapitaLand Mall Business Overview & Revenue Model

Company Description

CapitaLand Mall (C38U) is a leading retail real estate investment trust (REIT) based in Singapore. It focuses on the development and management of shopping malls across Asia, primarily in Singapore and China. The company operates a diversified portfolio of high-quality retail properties, catering to a wide range of consumers through various offerings including retail spaces, dining, and entertainment options. CapitaLand Mall aims to enhance the shopping experience through innovative retail concepts and strategic partnerships with brands and service providers.

How the Company Makes Money

CapitaLand Mall generates revenue primarily through rental income from its retail properties. The company leases out retail spaces to various tenants, including local and international brands, which pay rent based on fixed leases or percentage rents tied to sales performance. Additionally, CapitaLand Mall benefits from service charges and management fees associated with property management and maintenance. The REIT also earns income through strategic partnerships with retailers and brands, enhancing the shopping experience and driving foot traffic to its malls. Seasonal events, promotions, and advertising within the properties further contribute to its revenue streams, making it a multifaceted income generator in the retail real estate sector.

CapitaLand Mall Financial Statement Overview

Summary

CapitaLand Mall demonstrates strong profitability with high profit margins and efficient cost management. However, challenges are present due to declining revenue and free cash flow growth. The balance sheet is stable with balanced leverage, but return on equity is low, indicating limited profitability from equity investments.

Income Statement

CapitaLand Mall's income statement shows strong profitability with a high net profit margin of 58.86% and a robust EBIT margin of 81.39% for 2024. However, the revenue growth rate has declined by 32.4% compared to the previous year, indicating potential challenges in revenue generation. Despite this, the company maintains solid gross and EBIT margins, reflecting efficient cost management.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.58, showing a balanced approach to leveraging. The return on equity is relatively low at 6.01%, suggesting limited profitability from equity investments. The equity ratio stands at 60.84%, indicating a stable capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow growth by 4.83%, which could impact future investments. The operating cash flow to net income ratio is 0.69, indicating adequate cash generation relative to net income. The free cash flow to net income ratio is strong at 82.89%, reflecting efficient cash conversion from earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.58B	1.59B	1.56B	1.44B	1.31B	745.21M
Gross Profit	1.15B	1.15B	1.06B	1.04B	884.02M	512.74M
EBITDA	1.29B	1.29B	1.02B	966.09M	1.29B	473.99M
Net Income	968.42M	933.68M	862.57M	723.37M	1.08B	349.82M
Balance Sheet
Total Assets	25.57B	25.51B	24.74B	24.67B	22.74B	22.42B
Cash, Cash Equivalents and Short-Term Investments	169.92M	156.36M	140.70M	248.40M	365.13M	183.62M
Total Debt	8.84B	8.97B	9.50B	9.61B	8.19B	8.73B
Total Liabilities	9.81B	9.79B	10.34B	10.39B	9.05B	9.35B
Stockholders Equity	15.57B	15.52B	14.20B	14.07B	13.67B	13.04B
Cash Flow
Free Cash Flow	898.86M	865.49M	961.21M	896.15M	733.69M	323.99M
Operating Cash Flow	1.08B	1.04B	1.08B	1.02B	827.53M	379.68M
Investing Cash Flow	-546.83M	-520.57M	-38.88M	-926.02M	256.40M	-922.41M
Financing Cash Flow	-387.45M	-507.98M	-1.15B	-214.25M	-902.42M	524.15M

CapitaLand Mall Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.32
• 50DMA: Negative
• 100DMA: Positive
• 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:C38U, the sentiment is Positive. The current price of 2.32 is below the 20-day moving average (MA) of 2.33, below the 50-day MA of 2.35, and above the 200-day MA of 2.18, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.31 is Neutral, neither overbought nor oversold. The STOCH value of 68.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:C38U.

CapitaLand Mall Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HMN	76 Outperform	S$3.60B	15.88	5.16%	6.50%	1.47%	-7.50%
C38U	71 Outperform	S$17.73B	17.18	6.41%	5.35%	0.17%	8.05%
J69U	69 Neutral	$4.64B	21.84	4.49%	5.31%	10.82%	-5.02%
T82U	67 Neutral	$4.06B	-210.61	-0.32%	4.68%	0.01%	-110.22%
N2IU	66 Neutral	S$7.65B	11.08	7.32%	5.53%	-6.34%	49.60%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

CapitaLand Mall Corporate Events

CapitaLand Integrated Commercial Trust Issues Units for Management Fee

CapitaLand Integrated Commercial Trust Management Limited has announced the issuance of 2,955,400 units in CICT to Premier Healthcare Services International Pte Ltd as part of the management fee payment. This issuance represents 50% of the base component of the management fee for the third quarter of 2025, with the remaining fee paid in cash. The issuance does not affect the total number of units held by the company, maintaining its position in the market.

CapitaLand Integrated Commercial Trust Issues S$300 Million Green Notes

CapitaLand Integrated Commercial Trust has announced the issuance of S$300 million in 2.25% fixed rate green notes due in September 2032. These notes, issued under the U.S.$7 billion Euro-Medium Term Note Programme, are guaranteed by HSBC Institutional Trust Services and have been rated ‘A3’ by Moody’s, indicating a stable credit outlook. This move is likely to enhance CICT’s financial flexibility and sustainability profile, potentially impacting its market positioning positively.

CapitaLand Allocates Private Placement Proceeds for Strategic Initiatives

CapitaLand Integrated Commercial Trust, a significant player in the real estate investment trust sector in Singapore, announced the allocation of proceeds from a recent private placement. The company has used S$3.2 million for financing the acquisition of a 55% interest in Glory Office Trust, S$0.6 million for asset enhancement initiatives, and S$7.5 million for transaction-related expenses. Additionally, S$0.6 million initially allocated for acquisition and transaction expenses has been redirected towards asset enhancement, indicating a strategic focus on improving asset value.

CapitaLand Integrated Commercial Trust Issues Units for Acquisition Fee

CapitaLand Integrated Commercial Trust has announced the issuance of 3,844,078 units as payment for the acquisition fee related to its recent purchase of a 55% interest in Glory Office Trust. This transaction, classified as an ‘interested party transaction,’ mandates that the issued units cannot be sold for a year, highlighting CICT’s strategic move to consolidate its position in the commercial real estate sector.