Here's what to expect from CapitaLand's management reshuffling

De-emphasis of the Australia business tagged a right move.

New CEO, Lim Ming Yan has announced a new organisational structure, simplifying it into four businesses instead of the current eight, and reshuffling of key management.

All in, Barclays believes that there are no structural changes – still focusing on Singapore and China; but it notes that the de-emphasis on the Australia business and that management could be open to unlocking value in Australand (ALZ AU, not rated). "We continue to like CAPL with catalysts: China re-rating and ROE improvement. Valuations still undemanding at 18% discount to RNAV of S$4.59 (historial average 13%), and 1.08x P/B (hist avg 1.15x)."

Here's more from Barclays:

Former COO Lim Ming Yan officially takes over as CEO today and announced a realignment of the organisational structure to sharpen the company's focus on key markets. The organisational structure will be simplified from eight businesses to four: 1) CapitaLand Singapore; 2) CapitaLand China; 3) CapitaMalls Asia (CMA); and 4) Ascott. The group’s businesses in Singapore and China excluding that of CMA and Ascott, will be consolidated into CapitaLand Singapore and CapitaLand China, respectively, these include “Offices” and a large part of “Value Housing”. 'Financial Services' and 'Australia', and other smaller entities such as Surbana, StorHub, Vietnam, India, Japan, GCC and UK will be grouped under 'Other Businesses' led by the new Deputy CEO (former CIO) Olivier Lim.

Reshuffling of management. Key appointment changes will also be made:
1. Olivier Lim will be appointed Group Deputy CEO, relinquishing his current appointment of Group Chief Investment Officer (CIO), but will continue to be Chairman of Australand Property Group (ALZ).
2. Tan Seng Chai, currently the Deputy Chief Corporate Officer, will be appointed as Group CCO.
3. Chong Lit Cheong will be appointed CEO, Regional Investments, and will relinquish his current role as CEO, CapitaLand Commercial Limited. Reports to Olivier Lim.
4. Chen Lian Pang will be appointed as CEO, CapitaLand Vietnam and relinquish his role as CEO, CapitaValue Homes. Reports to Olivier Lim.
5. Wen Khai Meng will be CEO of CapitaLand Singapore and relinquish his role as CEO, CapitaLand Financial. Wong Heang Fine, CEO, CapitaLand Residential Singapore and Margaret Goh, CEO, Special Projects will report to Mr Wen.
6. Arthur Lang will remain as Group CFO; Jason Leow will remain as CEO, CapitaLand China, while CMA and Ascott will continue to be led by Lim Beng Chee and Chong Kee Hiong, respectively.
No structural change, still focusing on Singapore and China, but we note the de-emphasis of the Australia business and management says it will conduct a strategic review of its 59.3% stake in Australand, ALZ, which is a positive signal it could unlock some value, especially given the recent interest/bids for ALZ from local REITs/developer groups in Australia.

Continue to like CAPL: The stock has done well, but catalysts remain: potential unlocking of value in ALZ, China re-rating and ROE improvement. It is also still trading at an 18% discount to RNAV of S$4.59. Yesterday, URA flash estimates show that Singapore private residential price index grew 1.8% q/q in 4Q12, bringing full-year 2012 price growth to 2.8%, lower than 5.9% in FY11. Singapore private home prices are now 59% above 2Q09 trough and 19% above 2Q08 peak. We continue to be positive on Singapore residential property sector, which makes up about 12% of its RNAV. We expect Singapore property prices to grow 3% and 4% y/y in 2013 and 2014 respectively, in line with GDP growth.