Wing Tai

Wing Tai: Nomura note that market may be excited over the prospect that Mr Cheng could redeploy his capital by either raising his stake in or even privatising WINGT. House believe it helps to note the following: 1) 50% stake in WINGT that the Cheng family does not already own is worth over $800m at today’s price, i.e. before taking into account any premium that may be required. 2) Given Nouvel 18 is a JV with another listed developer, privatizing WINGT is unlikely to help circumvent the QC requirement. 3) There firstly needs to be a buyer for the bungalow at $300m. Sale of the bungalow or not, WINGT remains fundamentally undervalued in HOUSE view. current share price implies a further 25% fall in prime luxury home prices, which appears overly bearish. House has a $2.49 TP on the grp with a $3.27 RNAV.