SINGAPORE (March 30): OCBC Investment Research is maintaining its “buy” call on CapitaLand Limited, raising its fair value estimate on the stock from $3.68 to $3.93 after recent news broke on the group’s developments in Vietnam and Singapore.

In a Thursday note, analyst Eli Lee says he is optimistic on the property development’s business prospects in Vietnam after the CEO of CapitaLand announced that the group plans to acquire more sites in Vietnam for residential development, and will continue to seek investment opportunities in offices, serviced residences and integrated developments.

“Vietnam is currently CapitaLand’s third largest market, with $2.1 billion of gross assets under management, including 22 serviced residences, nine residential developments and a prime commercial property, and the group sold 1480 homes in FY16, up 12% y-o-y. The group also indicated that there could be potential for a Raffles City development in Ho Chih Minh City,” notes Lee.

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