Wing Tai

Wing Tai: Maybank KE reiterates Buy, with TP $2.55. Notes Wing Tai’s sale of one more unit at Le Nouvel Ardmore in Feb at a month-high unit price of $4,372 psf suggests that Wing Tai is not compromising on pricing just to move inventory, backed by its low estimated breakeven of $2,160 psf. Share price catalysts include impending new launches, such as, i) The Tembusu -- to be launched sometime this quarter, which should see healthy demand given its proximity to Kovan MRT station, and ii) Prince Charles Crescent site – to be launched around Jun. Sing Land’s $2,000 psf pricing for Mon Jervois nearby should be supportive of prices. The house notes Wing Tai is undeservedly trading at a deep 34% discount to NAV/sh of $2.95, and below its 10yr avg P/B of 0.84x despite having reduced net gearing to a 10-yr low of ~16%.