Stock With Momentum: CapitaLand Malaysia Mall Trust


This article first appeared in The Edge Financial Daily, on September 18, 2019.

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CapitaLand Malaysia Mall Trust (+ve)
SHARES in CapitaLand Malaysia Mall Trust (CMMT) (fundamental: 0.55/3, valuation: 2.7/3) triggered our momentum algorithm yesterday for the first time since July last year.
The counter closed unchanged at RM1.05 yesterday, with a volume of 3.31 million shares, higher than its 200-day average volume of 831,688 shares.
CMMT’s net property income (NPI) fell 5.7% to RM50.33 million for the second quarter ended June 30, 2019 from RM53.36 million a year earlier, on lower occupancies at The Mines and Sungei Wang properties.
CMMT said the NPI for Sungei Wang turned negative in the quarter mainly due to lower revenue and an increase in operating expenses arising from branding and social media marketing costs for Jumpa (the annexe block next to the mall). The trust’s gross rental income also fell 3.5% during the quarter to RM66.05 million from RM68.41 million a year ago.
CMMT had paid a distribution per unit of 3.22 sen. At the current share price, CMMT is trading at 0.84 times its book value.



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