$CapLand China T(AU8U.SI)$ is a beneficiary of China's shift from zero-COVID. Mainland and Hong Kong may resume quarantine-free travel as soon as 9 Jan according to local media reports. The 9 January timeline is earlier than most expectations, and should reinforce positive sentiments among investors that an eventual reopening may come sooner rather than later.
Furthermore, $Tiger Brokers(TIGR)$ is now running a generous S-REIT event where we have a chance to win stock vouchers worth up to SGD 1000. This will be a great opportunity to get additional rewards while investing in China reopening activity.
While China's reopening process won't be a smooth straight-line process, reopening is inevitable, and I believe CLCT will gain benefits due to its pure China exposure and attractive valuation. Pick-up in economic activity and mobility from reopening should see improvements in operations and/or bring positive asset revaluations.
As of 1H22 CLCT portfolio is 78.1% Retail (Malls), 14.6% Business Park, and 7.3% Logistic Park. Its retail properties will benefit from the easing of domestic measures while the new economy exposure in logistics and business parks add resilience to its portfolio.
Despite its recent initial rebound from an inflexion point of 0.93, the stock still trades at an attractive 7.3%/8.2% FY23F/FY24F dividend yield and 0.7X P/NAV.
Beyond the near term, consensus for CLCT is as high as 1.45 and 1.27 on average Stock Price Target.
About CLCT
CapitaLand China Trust (CLCT) is Singapore's largest China-focused real estate investment trust (REIT). CLCT's portfolio constitutes 11 shopping malls, five business parks and four logistics parks. The geographically diversified portfolio has a total gross floor area (GFA) of approximately 2.0 million square metre (sq m), located across 12 leading Chinese cities.
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 Nuohemule in Hohhot; CapitaMall Xuefu and CapitaMall Aidemengdun in Harbin and CapitaMall Yuhuating in Changsha.
The portfolio of five business parks 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.
The portfolio of four high-quality modern logistics parks are Shanghai Fengxian Logistics Park in Shanghai, Kunshan Bacheng Logistics Park in Kunshan, Wuhan Yangluo Logistics Park in Wuhan and Chengdu Shuangliu Logistics Park in Chengdu.
CLCT is managed by CapitaLand China Trust Management Limited (CLCTML), a wholly owned subsidiary of Singapore-listed CapitaLand Investment Limited (CLI), a leading global real estate investment manager with a strong Asia foothold.th a strong Asia foothold.
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