Wingtai

Wingtai: Macquarie maintains at Neutral with TP $2.22. Notes while stock is fairly priced, higher dividend is a catalyst. Expects healthy take up rates for the 2 new launches (Tembusu and mid-end condo) to kickstart FY14. Notes the group has no urgency to buy new sites as its' current landbank works out to 1.4m sf (in unsold GFA) or c. 1,200 units. Adds its undervalued listed subsidiaries (Wing Tai Malaysia and Wing Tai Properties) still trade at undemanding P/B levels of 0.85x and 0.37x. Believes higher FY13 dividend is sweetener, forecasting FY13 DPS of 7.0 cts (16% payout ratio), similar to FY11 and FY12. A 30% payout ratio works out to 13.0 cts, which equates to an attractive yield of 6.1%. However, in view of the lacklustre domestic high-end residential segment, which it has historically been a direct proxy of given its 33% exposure here, the house sees limited catalysts. Amongst Developers, Macq prefers CMA (Outperform, TP $2.43).