CMMT (5180) - Stock With Momentum: Capitaland Malaysia Mall Trust

This article first appeared in The Edge Financial Daily, on June 23, 2016.

Capitaland Malaysia Mall Trust (+ve)

CAPITALAND Malaysia Mall Trust (CMMT) (fundamental: 1/3, valuation: 0.15/3) rose eight sen or 5.3% to RM1.59. The counter saw 3.42 million shares traded on Tuesday, higher than its 200-day average volume of 809,592 units.

CMMT’s net profit income has grown steadily from RM162.4 million in 2011 to RM226.39 million in 2015. The distribution per unit (DPU) it announced has ranged between 7.9 sen and 8.9 sen in the past five years.

The real estate investment trust operates retail properties such as Sungei Wang Plaza, The Mines, Tropicana City Property, Gurney Plaza (GP) and the East Coast Mall (ECM).

For the first quarter ended March 31, 2016, CMMT’s net property income (NPI) increased 13.06% to RM60.6 million from RM53.6 million a year ago, mainly driven by contribution from the Tropicana City Property and better performance from GP and ECM on the back of higher rental rates achieved from new and renewed leases.

At current price, CMMT is trading at a trailing 12-month price-earnings ratio of 18.47 times.

CMMT (5180) - Stock With Momentum: Capitaland Malaysia Mall Trust