Wing Tai

*Result*

Wing Tai reported 9M10 net profits of $91.8m, slightly below expectations as profit recognition from residential projects were slower than expected. However, YTD earnings improved by 23% on the back of profit recognition from Riverine and Belle Vue. Riverine has obtained its TOP in April and the 60%-sold Belle Vue is likely to follow suit in around June. We expect these projects to contribute more meaningfully in the 4Q....


Wing Tai’s unsold landbank stands at an attributable GFA of about 820,000 sq ft, about 73% of which is in the high-end segment (ASP >$1,800 psf). We believe that its current 15% discount to book value is unwarranted, when its projects are expected to be profitable. Reiterate BUY ,target price of $2.50, pegged at a 10%-discount to RNAV.