CWT

CWT: KE maintains Buy, with $1.34 target. Likes CWT for its profitable and growing business, and logistics footprint from Asia to Europe and Africa.
Tips CWT as possible privatization candidate, following recent such corporate actions by other listed companies such as Parkway, Design Studio, Low Keng Huat, and MCL Land. Believes parent, C&P Hldgs which owns 53.5% of CWT, has sufficient resources to make an offer up to 30% premium to CWT’s current share price at $0.91 as C&P has received $268m from the divestment of 4 warehouses to Cache Reit, and may also tap on CWT’s est $209m net cash. Other catalysts would be the expected completion of two warehouses by 2011, which would put further divestment profits into its deep pockets