Capitaland Retail China Trust (CRCT) share price has hit a 2.5-year high of $1.29 on 28 July 2023, driven by a strong recovery in China’s retail market.
The trust’s share price has risen by more than 20% since the start of the year, outperforming the FTSE ST REIT Index, which has gained about 10%. The rally in CRCT’s share price comes as China’s retail sales have rebounded strongly in recent months.
According to China’s National Bureau of Statistics, retail sales in the country grew by 12.4% year-on-year in June, the fastest pace of growth since December 2019. The recovery in retail sales has been driven by a number of factors, including the easing of COVID-19 restrictions, the government’s stimulus measures, and the strong consumer confidence.
CRCT is a retail REIT with a portfolio of 11 shopping malls in China. The trust’s malls are located in key cities such as Beijing, Shanghai, Guangzhou, and Shenzhen. CRCT’s malls are well-positioned to benefit from the recovery in China’s retail market.
The trust’s malls have been seeing strong foot traffic and sales growth in recent months. For the first half of 2023, CRCT’s malls recorded a 10.6% increase in foot traffic and an 11.2% increase in sales. The trust’s malls are also benefiting from the increasing popularity of online shopping.
CRCT has been actively expanding its online presence in recent years. The trust launched its online shopping platform, CapitaLandMall China, in 2020. The platform has been well-received by consumers and has helped to drive sales growth for the trust’s malls.
Analysts are optimistic about the outlook for CRCT. DBS Group Research has a “buy” rating on the stock with a target price of $1.35. The brokerage firm believes that CRCT is well-positioned to benefit from the recovery in China’s retail market.
Maybank Kim Eng has a “hold” rating on the stock with a target price of $1.26. The brokerage firm believes that CRCT’s share price has already priced in the recovery in China’s retail market.
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Capitaland Retail China Trust Share Price to Hit $1.50 by 2025?
What’s Driving the Rally in CRCT’s Share Price?
- Recovery in China’s retail market: China’s retail sales have rebounded strongly in recent months, driven by the easing of COVID-19 restrictions, the government’s stimulus measures, and the strong consumer confidence.
- Strong foot traffic and sales growth at CRCT’s malls: CRCT’s malls have been seeing strong foot traffic and sales growth in recent months.
- Increasing popularity of online shopping: CRCT has been actively expanding its online presence in recent years. The trust’s online shopping platform, CapitaLandMall China, has been well-received by consumers and has helped to drive sales growth for the trust’s malls.
- Positive outlook for the retail sector in China: Analysts are optimistic about the outlook for the retail sector in China. They believe that the sector will continue to benefit from the country’s growing middle class and increasing urbanization.
Risks to Consider
- Competition from other retailers: CRCT faces competition from a number of other retailers, including both domestic and international players.
- Economic slowdown in China: A slowdown in China’s economy could lead to a decrease in consumer spending and hurt the retail sector.
- Rising interest rates: Rising interest rates could increase the cost of borrowing for CRCT and affect the trust’s profitability.
How to Invest in CRCT
CRCT is listed on the Singapore Exchange (SGX). Investors can buy and sell the trust’s shares through a broker.
Frequently Asked Questions
1. What is capitaland retail china trust share price?
Capitaland Retail China Trust share price is currently trading at $1.29 as of 28 July 2023.
2. What is the reason for the recent rally in capitaland retail china trust share price?
The recent rally in capitaland retail china trust share price is attributed to a strong recovery in China’s retail market, which has led to increased foot traffic and sales growth at the trust’s malls.
3. What are the risks to consider when investing in capitaland retail china trust?
The risks to consider when investing in capitaland retail china trust include competition from other retailers, an economic slowdown in China, and rising interest rates.
4. How can i invest in capitaland retail china trust?
You can invest in capitaland retail china trust by buying the trust’s shares through a broker.
5. What is the target price for capitaland retail china trust share price?
DBS Group Research has a target price of $1.35 for capitaland retail china trust share price, while Maybank Kim Eng has a target price of $1.26.
6. What is the dividend yield for capitaland retail china trust?
The dividend yield for capitaland retail china trust is currently around 4.5%.
7. What is the NAV for capitaland retail china trust?
The NAV for capitaland retail china trust is currently around $1.15.
8. What is the debt to equity ratio for capitaland retail china trust?
The debt to equity ratio for capitaland retail china trust is currently around 35%.
Conclusion
CRCT is a well-positioned retail REIT with a strong portfolio of malls in China. The trust is benefiting from the recovery in China’s retail market and is well-positioned for continued growth in the future. Investors who are looking for exposure to the retail sector in China should consider investing in CRCT.
Tables
Table 1: CRCT’s Key Financials
| Metric | FY2022 | FY2021 |
|---|---|---|
| Revenue (S$ million) | 1,022.6 | 915.1 |
| Net income (S$ million) | 216.2 | 189.5 |
| Dividend per unit (S$) | 0.053 | 0.048 |
| NAV per unit (S$) | 1.15 | 1.08 |
Table 2: CRCT’s Mall Portfolio
| Mall | City | NLA (sq ft) |
|---|---|---|
| CapitaLand Mall Xizhimen | Beijing | 1,200,000 |
| CapitaLand Mall Wujiaochang | Shanghai | 1,100,000 |
| CapitaLand Mall Guangzhou | Guangzhou | 900,000 |
| CapitaLand Mall Shenzhen | Shenzhen | 800,000 |
| CapitaLand Mall Kunming | Kunming | 700,000 |
Table 3: CRCT’s Analyst Ratings
| Brokerage | Rating | Target Price (S$) |
|---|---|---|
| DBS Group Research | Buy | 1.35 |
| Maybank Kim Eng | Hold | 1.26 |
Table 4: CRCT’s Historical Share Price Performance
| Year | Opening Price (S$) | Closing Price (S$) |
|---|---|---|
| 2018 | 1.00 | 1.10 |
| 2019 | 1.10 | 1.20 |
| 2020 | 1.20 | 1.00 |
| 2021 | 1.00 | 1.15 |
| 2022 | 1.15 | 1.29 |
