CWT

CWT: CIMB lowers TP to $1.81 from $1.96, keeps Neutral call. Notes CWT’s core logistics business has hit a soft patch due to: - Soft commodities have seen poor harvests impacting the commodity logistics segment, - Weak demand for hard commodities has hurt the LME metals business, and - Competition in the collateral mgt business from local Chinese collateral mgrs. The house sees a short term de-rating catalyst on announcement of the 2Q results in Aug, where the drag of labor cost restructuring will show up as a one-off and slower commodity supply chain mgt (SCM) growth will start to feature. The latter business, while facing new growth prospects from naphtha, is expected to report flat yoy profits due to one-time restructuring costs.