2. 1
INDEX
ITEM . NO TITLES PAGE . NO
1 INTRODUCTION 2
2 EXECUTIVE SUMMERY 3
3 CORPORATE PROFILE 4
4 REVIEW OF LITERATURE / REVIEW OF
ANNUAL REPORT
6
4.1 ) IMPORTANT EVENTS AS ON 2012 - 2013 6
4.2 ) BALANCE SHEET 7
4.3 ) INCOME STATEMENT 8
4.4 ) CASH FLOW STATEMENT 9
5 OPERATING ACTIVITIES 11
6 ANALYSIS OF OPERATING ACTIVITIES 12
7 DEBT FINANCING 15
8 EQUITY FINANCING 16
9 ANALYSIS OF FINANCING ACTIVITIES 17
10 ANALYSIS OF STOCK PRICE 18
10.1 ) SHARE PRICE ON 2012 18
10.2 ) SHARE PRICE ON 2011 18
10.3 ) CURRENT SHARE PRICE 19
11 CONCLUSION 20
12 REFERENCE 20
13 RECOMMENDATION 20
NUMBER OF WORDS : 2,468
3. 2
1 ) Introduction
This report going to explain about the financial position of the "CAPITAMALLS ASIA".
Financial position in the sense the cash flow statement, balance sheet statement,
Performance review, Income statement, Statement of stockholder equity or retained earnings.
4. 3
2 ) Executive Summery
CapitaMalls Asia Limited is one of the largest listed shopping mall developers, owners
and managers in Asia by total property value of assets and geographic reach. CapitaMalls
Asia has an integrated shopping mall business model encompassing retail real estate
investment, development, mall operations, asset management and fund management
capabilities. It has interests in and manages a pan-Asian portfolio of 102 shopping malls
across 52 cities in the five countries of Singapore, China, Malaysia, Japan and India, with a
total property value of approximately S$31.7billion (HK$200.0 billion) and a total GFA of
approximately 95.1 million sq ft.
5. 4
3 ) Corporate Profile
3.1 ) Vision
To be the leading shopping mall developer, owner and manager through value creation and
continuous innovation.
3.2 ) Mission
To create sustainable growth and capital value through acquisition, development, asset
enhancement and proactive management of our retail properties by leveraging on our
integrated shopping mall management platform.
CapitaMalls Asia Limited (CMA) is one of the largest listed shopping mall developers,
owners and managers in Asia by total property value of assets and geographic reach.
CapitaMalls Asia has an integrated shopping mall business model encompassing retail real
estate investment, development, mall operations, asset management and fund management
capabilities. It has interests in and manages a pan-Asian portfolio of 101 shopping malls
across 52 cities in the five countries of Singapore, China, Malaysia, Japan and India, with a
total property value of approximately S$31.7 billion and a total GFA of approximately 92.5
million sq ft.
Shopping malls in the portfolio include ION Orchard and Plaza Singapura – which are
located in one of the world’s most famous shopping streets, Orchard Road – Raffles City
Singapore and Clarke Quay in Singapore. Our landmark shopping malls in China are
CapitaMall Crystal in Beijing, Hongkou Plaza in Shanghai and Raffles City Shanghai; and
CapitaMall Jinniu in Chengdu. The portfolio also includes Gurney Plaza in Penang, Malaysia;
Olinas Mall in Tokyo, Japan; as well as Forum Value Mall in Bangalore, India.
CapitaMalls Asia’s principal business strategy is to invest in, develop and manage a
diversified portfolio of real estate used primarily for retail purposes in Asia, and to strengthen
its market position as a leading developer, owner and manager of shopping malls in Asia.
7. 6
4 ) REVIEW OF LITERATURE / REVIEW OF ANNUAL REPORT
4.1 ) IMPORTANT EVENTS AS ON 2012 - 2013
Jan2012
Raised S$400.0 million through the issue of 10-year step-up retail bonds, paying interest of
3.8% per annum for the first five years and 4.5% per annum thereafter, if the bonds
are not redeemed early. The public offer was approximately 4.65 times subscribed and the
placement tranche more than two times subscribed. Broke ground for Westgate, a landmark
shopping mall and office tower in Singapore’s Jurong Gateway, in partnership with
CapitaMalls Trust and CapitaLand.
Feb 2012
Acquired the remaining 73.71% stakes in three malls in Japan – La Park Mizue in Tokyo,
Izumiya Hirakata in Osaka and Coop Kobe Nishinomiya-Higashi in Hyogo – for about
JPY13.2 billion (on a 100% basis). Bugis+ and Junction 8 in Singapore were conferred the
BCA Green Mark Platinum Award by the Building and Construction Authority (BCA) of
Singapore.
MAY 2012
Formed joint venture with Sime Darby Property to develop a shopping mall on a freehold site
in Taman Melawati in the Klang Valley, Malaysia, for about RM500.0 million. This is our
first greenfield development and sixth mall in the country. Broke ground for largest shopping
mall in East China. A joint venture with Suzhou Industrial Park Jinji Lake Urban
Development Co., Ltd, this integrated development in Suzhou, China will comprise a seven-
storey shopping mall and two Grade A office towers, with a total development cost of about
RMB6,740.0 million.
Jun 2012
Established CapitaMalls China Development Fund III (CMCDF III) with a fund size of
US$1.0 billion to invest in the development of shopping malls and properties predominantly
used for retail purposes in China. This is our largest private equity fund to-date and fourth
fund focusing on China.
Aug 2012
Issued S$250.0 million of 10-year corporate bonds under the S$2.0 billion Euro-Medium
Term Note Programme, paying interest of 3.7% per annum. Luwan integrated development,
Shanghai, China was conferred LEED Gold Pre-certification.
8. 7
4.2 ) BALANCE SHEET OF CAPITAMALLS AS ON 31 DECEMBER 2012
The comparison of two year's ( 2011 - 2012) financial position of capitamall
Particulars 2011 2012 comparison
$'000 $'000 $'000
The amount of total current
asset
1,663,777 1,465,965 Decrease
197,812
The amount of total non-
current asset
3,342,634 3,417,039 Increase
74,405
The amount of total current
liability
278,717 93,891 Decrease
184,826
The amount of total non-
current liability
890 4,713 Increase
3,823
Total Stockholder's Equity 1.60 1.67 Increase
0.7
9. 8
4.3 ) INCOME STATEMENT OF CAPITAMALLS AS ON 31 DECEMBER 2012
The comparison of two year's ( 2011 - 2012) Income statement of Capitamalls.
Particulars 2012 2011 Comparison
$'000 $'000 $'000
Total ( operating ) revenues 355,362 310,597 Increasing
44,765
Cost of goods sold 42,769 33,516 Increasing
9,253
Total expenses (before income
taxes)
144,128 179,647 Decreasing
35,519
Earnings per common share 14.0 11.7 Increasing
2.3
Other operating income 2,793 2,250 Increasing 543
Other operating expenditure 62,889 99,695 Decreasing 36,806
10. 9
4.4 ) CASH FLOW STATEMENT OF CAPITAMALLS AS ON 31 DECEMBER 2012
11. 10
The comparison of two year's ( 2011 - 2012) Cash flow statement of Capitamalls
This Cash flow statement was prepared based on the "DIRECT STATEMENT " method.
Particulars 2012 2011 Comparison
$'000 $'000 $'000
Net cash inflow from
operating activities
25,780 7,926 Increasing
17,854
Net cash inflow from
financial activities
1,264,731 372,738 Increasing
891,993
Net cash outflow from
investment activities
1,566,454 719,021 Increasing
847,433
Net decrease in cash 275,943 338,357 Decreasing
62,414
12. 11
5 ) OPERATING ACTIVITES
Based on the Income statement of the Capitamalls, this company performance is good,
because it getting better sales revenue the previous year ( 2011), It gain $44,765000 more
then 2011. The cost of goods sales also increase up to $9,253000. The important thing is the
sales revenue and cost of goods sold is increased as a ratio of 5:1, It's good for the company
health. Company should manage and try to reduce their expenditure, It help to maintain
theyer finance performance. Capitamalls expenditure was reduce up to $ 35,519000, then
previous year. Shareholders are one of the main financial partners, So the company must
satisfied them, through the earning per share value. Capitamalls get 2.3% increment their
earning per share value . The company taxation is increased. the net income is increased then
the year 2011.
This year (2012) Capitamalls getting the indirect gain, The Other operating expenses less
than the previous year, It lesser $36,806000. It's good for the company performance.
Based on the company cash flow statement, Company Net Cash Flows generated from
Operating Activities is increased more than the previous year. It increase $ 17,854.This
increment show the better performance of the company operation.
This year (2012) Capitamalls Gain on disposal of subsidiaries is newly entered in the
statement , the value of this $ 80,900000. Income tax also lesser than the previous year, It
lesser more than $13,250000.
Based on the company balance sheet, The company receivable is decrease $197,814,000
then the previous year, The tax payable is increase $3,243,000 then the previous year, The
deferred income tax is lesser $ 99,000 than the previous year. Based on this result except the
tax increment, company value is good in the industrial market. There is no information about
the inventory and account receivable bad debts percentage.
Finally based on these Income statement, Cash flow statement , Balance sheet analysis
result, the overall company performance is better than the previous year and also good in the
industrial market.
13. 12
6 ) Analysis of Operating Activity
Based on the last two years financial statement,
The Gross profit margin in increase up to 12.8% ,
The operating profit margin of the company is increased up to 225.17% ,
The Net profit margin of the company is increased up to 69.76%
The Receivable turnover is decreased on this year up to 11.8%
The Asset turnover is decreased on this year up to 2.46 %
Rate of return on total stockholder's equity in increased on this year up to 4.37%
Based on this results, It shows the better performance company. Except the asset turnover,
other vice the performance is good.
Based on this observation of this company performance, The company maintain theyer
development process properly, This company continually improve their 5 year performance.
This is the supermarket industry, It's one of the most risky industry, The maintained of the
company performance is help to reduce the risk. the company follow the stranded trend at
their all position. That is the main thing help to perform better.
14. 13
The company operating effectiveness, still getting the positive performance reapply. The
Shopping mall market is too competitive one nowadays. Because globalisation change the
entire world market situation. The last 5 years financial report show the company
development year by year. It never lose the value at any situvation.
15. 14
Company efficiency is too good, because the com shareholding are too strong group of
peoples based on their finance background, Like Citibank, DBS,HSBC. Those share holders
are standard valuable persons in the market. So this company can perform theyer most
efficiency level without any financial problems.
16. 15
7 ) Debt financing
Based on the company last two year Balance sheet
The company total liability of 2012 is decrease than the previous year up to 64.73% .
The company non - current liability of 2012 is Increased than the previous year up to
431.57%
The company Current liability of 2012 is decreased than the previous year up to 66.31%
The interest - bearing is increased then the previous year up to 35.8% , these
information are collected from the "Interest rate profile " of the company. The increasing of
interest rate is not good for the company. the resin for this increment is the company loan is
increased on this year.
As at 31 December 2011, the Group's gross debt stood atS$1,229.7 million and cash
balance of S$975.5 million. TheGroup's net debt as at 31 December 2011 was S$254.3
million as compared to a net cash position of S$618.4 million at end 2010. The increase in
net debt position was due to increase in investments partially offset by increase in borrowings
with draw down of new bank loan and through the issuance of its maiden retail bonds
comprising of S$75.0 million 1% 1-year and S$125.0 million 2.15% 3-year retail bonds with
an ggregate notional amount of S$200.0 million to retail investors in January 2011. As at 31
December 2011, 85.9% of the Group's borrowings were denominated in Singapore Dollars,
7.5% in Chinese Renminbi and 6.6% in Malaysian Ringgit.
Riding on the successful issuance of the retail bonds in 2011, the Group launched its 10-
year, S$400.0 million callable step-up bonds in January 2012 and generated keen interest
from retail investors with the initial public offering of S$100 million more than 4 times
subscribed.
There are no any contingent liabilities reported or disclosed on the 2012 year balance sheet.
17. 16
8 ) Equity financing
The shareholder's equity is increased then the previous year up to 0.7%
There is no information about the outstanding shares in the last two years balance sheet
and the annual report of the company.
There is no information about the classification of shares in the last two years balance
sheet and the annual report of the company.
The company decided the dividend 1.65% on the year of 2011, But company only able to
provide 1.5% dividend. They pay this dividends as a amount to the share holders.
2012 2011 Comparison
Dividend payout ratio 1.94 % 1.87 % Increased
0.07%
Dividend yield ratio 1.54 % 1.42 % Increased
0.12%
Based on the annual report and the financial statement of the company, there is no specific
trend in these ratios that the company have in the recent year.
18. 17
9 ) Analysis of the financial activity
Based on the review of the company's liability and the shareholder's equity analysis, This
company using the financial leverage strategy. The financial leverage ratio of this company is
7.5% on this year (2012).
There is no long - term outstanding notes or bonds in the company.
Financial ratio for the 2011 and 2012
2012 2011
Rate of return on total asset 0.136% 1.607%
Rate of return on total
stockholder's equity
16.13% 12.64%
Dividend payout ratio 1.94% 1.8%
Times interest earning 0.5076% 0.257%
Overall financial ratios for the 2012 and 2011
2012 2011
Current ratio 15.613 times 5.96 times
Quick ratio 15.613 times 5.96 times
Debt - to - equity ratio 9.481 times 6.184 times
Based on the review of these two financial ratio analysis, It help to clearly understand the
financial activities of the company. It show the better improvement of the company with
compare to the past year (2011).
19. 18
10 ) Analysis of stock price
10.1 ) Share price on 2012
10.2 ) Share price on 2011
20. 19
10.3 ) Current share price
Based on the review of the 2011,2012 and current situation of the share price, It show the
improvement of the price value of the CapitaMalls share. on the year 2011 is fall down up to
30.00 % but at the end of the 2012 it reach nearly 60.00% the current situation also show the
good performance of the share price in the market.
21. 20
11 ) Conclusion
Finally the overall performance of the company gave a positive result for the investment.
The financial statement of the company ( Balance sheet, Income statement, Cash flow) is
show the better performance of the company in the market nearly last five years.
The ratio analysis also show the positive reapply about the share price and the
performance of the company in, and theyer improving level in the market.
Particularly the share price value is good and also continually increase the price value in
the share market. So this situation is good for the investor, who going to invest in the
company.
12 ) Recommendation
Investing into this company is good. Because the share value is continually increasing then
the previous year up to the current value in the share market. The stockholder's also too
powerful financial group of people. like Citibank, DBS, HSBC, and etc....
22. 21
13 ) Reference
The annual report of the CapitaMalls 2012
The annual report of the Capitamalls 2011
sg.finance.yahoo.com/q/cp?s=%5ESTI
www.sgx.com
http://btstocks.asiaone.com/keyIndices.html
http://www.investasiaonline.com
http://www.shareinvestor.com
http://richard-wilson.blogspot.sg/
http://accountingexplained.com/
http://sg.finance.yahoo.com/echarts?s=JS8.SI
http://www.findata.co.nz/
