Brokers' take

CapitaLand Retail China Trust | Hold (Downgrade)

Target price: S$1.60

Oct 26 close: S$1.55

OCBC Investment Research, Oct 26

CRCT's Q316 results were impacted by a stronger SGD against RMB, as well as an additional tax provision for its Beijing assets; we had not anticipated the latter. Q3 DPU dropped 10.6 per cent y-o-y to 2.36 Singapore cents, or 21.6 per cent of our initial FY16 forecast.

Going forward, we look to contributions from Chengdu, Galleria starting from Oct 1, 2016,as well as the recovery of rental income from Minzhongleyuan (MZLY) in FY17. Nonetheless, after accounting for the change in tax provision for CRCT's Beijin…