Friday, October 28, 2011

Wing Tai

Wing Tai:1Q Net profit was $25.1m +281% yoy -35% qoq coming in 13% of consensus. Rev at $109.0m was 58.8% yoy -5.3% qoq from sales in Helios and progressive recognition of L’VIV. Profits fell qoq attributed to slower sales. Sales activity has slowed even in more resilient low/mid-end segment with declining take up for Foresque. Other ongoing launches are Helios and co has previewed Le Nouvel Ardmore with commencement of construction on Jean Nouvel Residences. Co highlights that URA’s flash estimate shows property price index increase continues to moderate, increasing by 1.3% in 3Q compared to 2.0% in prev quarter, the 8th consecutive quarter rate of increase has moderated.

DB maintains Hold with TP$1.45 citing undemanding valuations but macro uncertainty dampening high-end sales. Notes co has been disciplined in acquisitions and moderation in land prices could offer more attractive opportunities to restock landbank.

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