Wing Tai

Wing Tai: CIMB notes that the developer is "cheap enough" at 44% discount to RNAV and 0.43x FY15e P/B (-1 std dev). The stock has shed 10% in the past three months, when the STI and FTSE Real Estate Index was flat. Investment properties account for a third of Wing Tai's total assets, and occupancies are healthy (86% for SG commercial, 70-80% for serviced residences in SG and MY). These should help support earnings. Meanwhile, weakness in the residential mkt has likely been priced in . Key risk is in Wing Tai's Nouvel 18 and Le Nouvel Ardmore projects, but any impact from the extension premium will only reduce RNAV by 5% at most. Wing Tai boasts a healthy balance sheet with net gearing at a mere 13%. Add with TP $2.09