Brokers' take

CapitaLand Retail China Trust > Hold OCBC Research, Sept 15 Sept 15 close: S$1.615 Target price: S$1.59

WE note that CapitaLand Retail China Trust's (CRCT) sponsor, CapitaLand, has been actively advancing its offline-and-online (O&O) strategy, and believe that this places CRCT in an advantageous position in the longer-run as similar solutions may be replicated across its own portfolio.

Going forward, CRCT faces more than one positive DPU catalyst as well as the loss of income following its Anzhen divestment. After updating our FY17 average RMB exchange rate from 1 RMB = 0.204 SGD to 1 RMB = 0.205 SGD, as well as tweaking our FY18 to FY20 currency assumptions, our fair value estimate increases from S$1.55 to S$1.59. Against yesterday's closing price, CRCT is currently trading at a 6.6 per cent FY17F dividend yield and a 7.1 per cent FY18F yield.