Wing Tai

Wing Tai: Solid 1QFYJun13 results. Net profit came in at $72.1m, +187 % yoy, +43% qoq (excl revaluation gains in the last qtr). Earnings growth was attributable to additional units sold in Belle Vue Residences and Helios Residences, as well as progressive recognition of profits from Foresque Residences and L’VIV. In the qtr, Wing Tai launched the second phase of Foresque Residences and managed to sell another 115 units at an ASP of ~$1100 psf. To date, >80% of the 496 unit project has been sold. In Sep, Wing Tai also joined hands with Metro and United Engg to secure a 2.4 ha condo site at Prince Charles Crescent via the Govt Land Sales programme for $516.3m. Breakeven is estimated at ~$1450 psf and ASP at ~$1750 psf. Wing Tai’s 40% stake could translate to an RNAV accretion of 6 cts/sh. Maybank-KE Research says the stock remains attractively valued at 0.6x P/B, 0.5x P/RNAV, underpinned by a forecast div yield of nearly 4%. Reiterates Buy with slightly raised TP of $2.14 (from $2.10), pegged at 40% discount to RNAV.