CWT

CWT: 3Q Rev $1.0b up four-fold yoy and three-fold qoq. Net profit at $15.8m +189% yoy +46.3% qoq. The vast changes in results were due to acquisition of 73.8% stake in MRI trading which was consolidated this quarter. Gross margins were 12.1% in prev quarter but fell to current 5.6% after including the trading unit.

Co’s Pandan Logistics Hub with GFA of approx 325.0k sq ft received TOP in Oct 2011 and is commissioned in Nov 2011 with full utilization. Of note, co has seats on the CME and CBOT included in its balance sheet under other investments which complement its new acquisition.

CWT now trades at a P/B of 1.2x with annualized 3Q P/E of 10.0x. Hist avg P/E is approx 15.8x