Wingtai

Wingtai: 4Q results in-line.
Net profit at $170.6m, +148% yoy, while rev at $115.1m, -48% yoy. Earnings surge largely due to fair value gains on investment properties of $74.6m. Result brings FY11 earnings to $314.2m, while Rev -21% yoy to $649.1m, primarily due to a 32% drop in rev from development properties

Further boosting bottomline was an increase in share of profits of associated and JV Co’s from $32.7m vs $111.3m qoq, namely HK listed associated Co. Wing Tai Properties and the Floridian project in Singapore's Bukit Timah area.

For latest year, contribution came mainly from progressive sales recognised from Helios Residences at Cairnhill Circle and additional units sold at Belle Vue Residences along Oxley Walk. Rev from retail operations +12.6% to $202.4m in FY11, due to higher sales from grp’s portfolio of popular retail brands include Miss Selfridge, Topshop and Topman, Uniqlo, Dorothy Perkins, Warehouse and G2000.

Grp has proposed a 7c div (3c first and final and 4c special) for FY11, representing a 5.6% yield. At current price, valuations are compelling, with grp tradeing at 0.51x p/b, while gearing ratio remains comfortable at 0.35x. Kim Eng maintains Buy with $1.86 TP (40% discount to RNAV) while Goldman Sachs remains neutral with $1.72 TP.