CWT

CWT: 1Q14 results beat as net profit raced 30% y/y to $35m, while revenue tripled to a record $4,536.3m, as the group was affected by higher finance expenses (+757%), in tandem with the expanded scale of commodity marketing and warehousing. The top line was boosted by higher volume from commodity marketing segment, which accounted for 93% of top line. Going forward, CWT is well poised to benefit from the growing developments of chemical companies on Jurong Island which are expected to present huge opportunities for its pallet supply chain and packaging solutions. The recent grant of Capital Market Service License to conduct regulated activity of trading in futures contracts would allow the company to expand beyond its stronghold on OTC brokerage to offer a complete suite of commodity derivatives, when combined with CWT's logistics capability, is expected to provide customers with an integrated one-stop solution for physical and hedging needs. The group is on track to obtain TOP for its CWT Cold Hub 2 in 2Q14, while Pandan Logistics Centre is scheduled for completion in 4Q14. Maybank-KE reiterates their Buy rating and raised TP to $1.90 (from $1.50).