Capitaland Retail China Trust – [ Moved Up 6.5% After Our Post, Still Worth Looking At It? ]

12th October, 2020, 7:00 AM

Capitaland Retail China Trust – [ Moved Up 6.5% After Our Post, Still Worth Looking At It? ] CapitaR China Tr 12th Oct 2020

Chart Source : Poemsview 12th Oct 2020

If you read our blog just last friday we mentioned CaptaR China Tr was a stock that we’re looking at given their new investment strategy and a good dividend yield with a strong sponsor.

Well, just within the day it shot up over 6.5% to reach a day high of $1.28 from the previous day close of $1.20. It’s pretty impressive if you ask us, given that its a reit and we wouldn’t expect to see such a spike up.

So some have been asking, can still buy?? Fundamentally nothing changed overnight and the company is still on track with their expansion so let’s take a look of it from a technical perspective.

CapitaR China Tr has broken out of its downtrend line with a healthy volume and is moving away from that. If you missed this breakout then maybe for a retracement might be an idea. A good retracement might be the test of $1.20 where one can look for some entry again.

There could be more upside room for CapitaR China Tr and you got to ask yourself if you’re comfortable with chasing the stock now.We have drawn the resistance

Our upside target are drawn on the chart and we’re intending for this is to a midterm trade rather than a short term trade.

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Capitaland Retail China Trust – [ Expansion Of Investment Strategy, Worth Looking At It?]

9th October, 2020, 7:00 AM

Capitaland Retail China Trust – [ Expansion Of Investment Strategy, Worth Looking At It?]

Image: CapitaR China Tr presentation slides

Capitaland Retail China Trust or CapitaR China Tr for short is the first and largest China-focused Reit listed in Singapore. They have recently announced an expansion of investment strategy which is turning some heads.

Just a snapshot of what they’ll be doing, they’ll be looking into its investment strategy beyond the retail sector to include office and industrial assets (including business parks, logistics facilities, data centres and integrated developments.) With key focus on long term growth, diversification, resilience, sustainability and returns.

This also shifts its focus from a pure retail play to a more diversified China growth story and might be more attractive for investors, given retail is on a decline and online shopping is gaining strong momentum.

Furthermore data centre are a unique asset and moving into this class of asset is in the right step.

An insert from CapitaR China Tr’s presentation.

More of the presentation slides can be viewed HERE

Let’s take a look at the chart and look at it from a technical analysis perspective.

Chart Source: Poemsview 9th Oct 2020

CapitaR China Tr has actually broken out of its long term downtrend line with one of the biggest volume for the year. It has also broken above its horizontal resistance of $1.19. These are positive technical points for an entry.

It has been consolidating for about two months and so some upside might be expected. We have drawn the resistance levels and a good support should be around $1.10

Our concluding thoughts :

1. Its operating metrics turned positive in Aug and with recovery in sight, we might see more upside

2. Potential addressable pipeline close to $33bn  (from its sponsor CapitaLand)

3. Dividend yield of about 6% which is very decent in today’s market

4. Worth a look for your investment/dividend portfolio with a structured approach in scaling in.

Do contact us if you’ll like to know more!