WingTai

WingTai: 2QFY11 results largely in line with expectations. Revenue was at $197.8m, +13.0%yoy, +50.9%qoq and net profit was $53.9m, +142%yoy, +78.6%qoq. Increased rev was due to sales from Helios and Belle Vue Residences and profits improved due to contributions from JV and associates from the Floridian project in Singapore and Wing Tai Properties in HK…

Co mainly pared down short-term borrowings and reduced gearing from 0.44x to 0.31x from 30 June 2010. Co still has unsold units in 5 existing projects and 3 sites expected to launch within the yr, 2 in Ardmore and govt land site in Petri Road....

Macq rates Outperform TP$2.03 lowered from $2.14. Deutsche maintains Hold with TP$1.81. Both houses have remarked on the possibility of replenishing its landbank given low gearing at 0.31x and supply from GLS. Wing Tai currently trades at 0.77x P/B.