CWT

CWT: SCB hosted a one-day NDR in SG with CWT’s CEO. The key takeaways are: 1) supply chain management (SCM) business to sustain robust growth and likely to double its revenue this year; 2) logistics business enjoys strong competitive edge and growth; 3) no plans for asset sales this year; and 4) better dividends ahead. House raise our 2013E/14E EPS by 8%/20% to reflect the robust run-rate of the SCM business and bond issue and house positive view on CWT remains intact post-NDR, seeing growth catalysts from its SCM business. Excluding warehouse assets, estimate CWT‟s core business to be trading at just 3.6x 2014E EV/EBITDA – 50% of its EV is supported by its warehouse assets. House raises TP to $2.20 from $2.03.