CWT

CWT: 3Q2013 net profit sank 53% y/y to $19.1m although revenue increased 52% $2.2b, with the increase coming mostly from sale of energy products and base metals its Commodity Supply Chain Management business. Gross margins declined from 4% to 3% y/y. Other income was lower by 97% y/y at $0.8m was due to a $22.5m gain from sale and leaseback of a logistics property in 3Q2012. Administrative and finance cost (from higher borrowings) also increased. The lower other operating income, plus various operating expenses pulled bottom line down. On logistics capacity expansion: 1) Construction of CWT Cold Hub 2 is 70% completed, and target TOP is 1Q2014. 2) Construction of logistics hub at Toh Guan Road East is 85% completed with target TOP being end of the year 3) Redevelopment of the newly acquired site at Pandan Avenue into a multi-storey ramp-up logistics facility commenced in July 2013. Target TOP is 4Q2014 NAV at 30 Sep 2013was $1.045, which translates to 1.3x P/B. Annualized 3Q13 P/E is 11x