Wing Tai

Wing Tai: 1QFY15 net profit was flattish at $24.2m, while revenue fell 28% to $160.1m, contributed by progressive sales recognized from The Tembusu, the additional units sold in Helios Residences in Singapore and The Lakeview in China. The impact in bottom line was mitigated by a one off gain on disposal of a subsidiary company, coupled with a 69% increase in contributions from JVs and associates. Balance sheet remains strong at 14%, which should enable it to weather challenging operating conditions and restock land bank at potentially more attractive margins. At BVPS of $3.85, Wing Tai is trading at 0.45x P/B. Latest broker rating: Deutsche maintains Buy with TP of $2.15