Capitaland's net profit dipped 1.7% to $183m

Here's the main culprit.

According to OSK-DMG, Capitaland reported a weak set of 1Q14 results, with revenues of $613mil (-3.4% YoY) contributing to net profit of $183mil (-1.7% YoY), accounting for only 18% of consensus full year forecasts at $1bn.

Here's more:

CL Singapore (44% of assets) was the key drag with revenues down -37% YoY (project completions and slow residential sales) and EBIT of $186mil (-17% YoY). Encouraging to see CL China (38% of assets) grew its revenues +56% YoY (driven by deliveries) and EBIT of $165mil (+19% YoY).

Capitaland’s ongoing privatisation of subsidiary CMA likely to be completed by mid-June. Stock is currently trading at 0.85x NAV and recent run up in share price may provide opportunities for profit-taking.