Tuesday, August 24, 2010

Wing Tai

Wing Tai 4QFY10 net profit rebounded strongly to $68.9m due to completion of high margin projects. Excluding revaluation gains of $20.7m, core FY10 net profit rose 29% to $140.1m, in line with consensus estimates. Earnings was underpinned by Belle Vue & Riverine by the Park (both obtained TOP in 4Q) while rental income was steady. Company declared a DPS of 5¢ for FY10 vs 4¢ in FY09.

WT will continue to recognize profits from Ascentia Sky, Floridian, L’VIV, Helios & Belle Vue. Mgmt plans to launch the remaining units in Belle Vue and Helios in 2H10 and may launch Anderson 18 (156 units) over the next 12 months. WT has recently submitted 2 bids to redevelop the historic Capitol Building & Stamford House.

WT currently has 900k sf of saleable GFA, 50% in high end & 50% in mid-tier. Mgmt remains positive on the mid to high end segments but warns the upgrader market is approaching saturation with the release of more GLS sites, which enable it to replenish its depleting landbank.

DB has a Hold rating on the stock with a TP of $1.88, pegged at 25% discount to RNAV. Citigroup keeps its Buy rating with $1.81 TP while KE has a Buy call with $2.50 TP.

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