CLMT poised for strong earnings in coming years


TA Research marginally tweaked the company’s FY25 and FY26 earnings forecast by 0.1%.

PETALING JAYA: Analysts have fine-tuned Capitaland Malaysia Trust’s (CLMT) earnings forecasts for the upcoming financial years, following the group’s strong net profit for the year ended Dec 31, 2024 (FY24).

CLMT posted a higher net profit of RM187.16mil, translating into a basic earnings per share of 6.63 sen.

Revenue for FY24 grew by 15.06% year-on-year (y-o-y) to RM454.76mil, primarily driven by full-year contributions from Queensbay Mall post-acquisition in March 2023 and positive rental reversions across its portfolio.

The trust declared a distribution of 4.65 sen for FY24.

Kenanga Research noted that the performance was within its expectations.

“We have to tweaked earnings forecast by 4% for FY25, taking into account the slightly higher rentals from Queensbay Mall.

“We also foresee a positive trajectory for CLMT in FY25 and FY26, given promising developments in Penang,” it said in a report.

In the industrial segment, the research house noted that in the previous quarter, the group’s Glenmarie distribution centre secured a tenant, which is expected to contribute net property income of up to RM3mil annually from FY25.

Additionally, its Valdor Logistics Hub saw a high rental reversion in the same period.

“Besides that, we are pleased with the yield-accretive industrial asset recently acquired by the group, namely the Elmina Business Park land, which will commence rental income from FY26,” Kenanga Research added.

Separately, TA Research marginally tweaked the company’s FY25 and FY26 earnings forecast by 0.1%.

The research house noted that CLMT remained optimistic about 2025, projecting mid-to-high single-digit rental reversions, driven by robust retail performance across its malls.

In FY24, CLMT recorded a 4.7% y-o-y increase in shopper traffic and a 4.2% rise in tenant sales per sq ft.

This growth was attributed to the introduction of new retail concepts, enhanced tenant offerings and targeted shopper activation programmes.

As for the logistics segment, the company proposed to acquire a modern logistics property in Sungai Buloh, Selangor, for RM180mil, equipped with an advanced automated storage and retrieval system.

Additionally, the RM27mil acquisition of three freehold industrial factories in Nusajaya Tech Park, Johor, is expected to be completed in the second half of 2025.

“We maintain our ‘buy’ recommendation with an unchanged target price of RM0.82 (per share), based on 2025 target yield of 6.2%,” TA Research said.

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