Brokers' take

CapitaLand Retail China Trust (CRCT) | Buy (initiate) March 21 close: S$1.51 Target price: S$1.61 KGI Securities, March 21

Chinese disposable urban income has more than tripled over the last 12 years. The revision of individual income tax laws implemented since the start of 2019 might act as an additional boost to future disposable income.

Retail malls continue to compete for shopper traffic through experiential shopping, Omni channel strategies and digital marketing. We see synergies between CRCT and other CapitaLand mall Reits who have tried and tested similar concepts and technologies.