CWT

CWT: 4Q13 net profit surged 91% y/y to $41.8m, on revenue spike of 101% to $3,670.1m, mainly driven by strong commodity trading activities on products expansion into naphtha and distillates, in particular. The stellar fourth quarter results made up more than double of the average of the first three quarters of the year, bringing FY13 earnings to $106m (-2%) and revenue to $9,097.1m, above street estimates. Maybank-KE believes growth over the next two years will be driven by capacity increase in its logistics business, underpinned by diversification of CWT's commodity trading portfolio. Mgmt raised first and final DPS to 3.5¢, above FY12's DPS of 3¢. At $1.31, CWT trades at 7.4x trailing P/E, below its 3-year average of 11x. Latest broker recommendations as follows: Maybank-KE maintains Buy with higher TP of $1.50 (from $1.47)