CWT

CWT: OCBC INITIATES Coverage with Buy Call and $2.08 TP. Note that CWT is a leading provider of logistics solutions for worldwide customers in the commodities, chemical, petrochemical, marine, oil & gas, defense and industrial sectors. A competitive edge is its global logistics network which connects customers to around 200 direct ports and 1,500 inland destinations. The group is currently developing two large warehouses, estimated to add another 50% to its owned warehouse space in Singapore. In total, estimate its entire warehouse portfolio to be worth about $800m. Meanwhile, the recently acquired Commodity SCM business is also expected to scale up quickly, taking advantage of the group’s strong global logistics network and reputation as an established commodity collateral manager.