CWT

CWT: Strong set of results which in-line with bullish estimates, after stripping off one-off gains. 4Q12 rev at $1.8b, +58.3% yoy and +25.4% qoq, while net profit at $22m, +5.7% yoy and +24% qoq. FY12 rev at $5.4b, +109% and net profit at $107.9m, +89% Strong bottom-line partly boosted by a $22.6m gain from sale and leaseback of a logistics property. Strong performance was boosted by growth in rev and from its Commodity Supply Chain Management (SCM) Business on back of higher vol; Logistics Business arising from higher capacity, volume and yield; and Engineering Services Business from project income. Rev sourced from China accounted for more than 50% its revenue with full yr contribution from Commodity SCM Business. In FY12, Commodity SCM Business also contributed to the increase in rev from other Asian countries such as India, Korea and Thailand by two folds. Going forward, aims to build diversified supply sources and seek diversification in business lines and geographic trade flows. The acquisition of LN Metals in Sept12 added refined metals to its trading portfolio. To further enhance the SCM operations, the Group has added significant operations in SG as well as for the domestic China market. For the Logistics Business grp will build its global logistics network and capabilities to integrate with the growth of Commodity SCM Business. Initial start-up cost is expected in order to build up the scale of operations. Overall, grp’s fundamentals remain strong, with a net cash position of $78.4m. CWT is recommending a div of 3c/share. At current price, grp trades at 7.7x P/E. Ratings as follow CIMB maintains O/p with $1.75 TP