WING TAI HLDGS LTD
W05.SI
Wing Tai Holdings Ltd: 1QFY16 hit by absence of one-time gains
- Wing Tai’s 1QFY16 PATMI fell 92% YoY to S$2.0m mainly due to the absence of a S$21.2m divestment gain from the sale of shares in a Indonesian property subsidiary in 1QFY15 and lower profits from JV/associates as contributions from Wing Tai Properties Ltd in Hong Kong and joint venture projects in Singapore fell.
- However, in terms of the topline, 1QFY16 revenues increased 6% YoY to S$170.3m given contributions from The Tembusu, Le Nouvel Ardmore, The Lakeview in China and contributions from Phase 2 of Jesselton Hills in Penang which obtained TOP over the quarter.
- Our forecast has been for FY16 PATMI to dip 54% YoY to S$61.1m (versus S$132.1m last year) and, accounting for one-time items, we judge this quarter’s results to be broadly in line with expectations as we expect a back-loaded year in terms of earnings.
- Wing Tai’s net gearing ratio currently stands at 14% and we believe the group is well-positioned to ride out the current down-cycle.
- Maintain BUY with an unchanged fair value estimate of S$2.58.
Eli Lee
OCBC Securities
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http://www.ocbcresearch.com/
2015-09-28
OCBC Securities
Analyst Report
2.58
Same
2.58
