Wing Tai Holdings Ltd - OCBC Investment 2016-11-17: Muted set of 1QFY17 results

Wing Tai Holdings Ltd - OCBC Investment 2016-11-17: Muted set of 1QFY17 results WING TAI HLDGS LTD W05.SI

Wing Tai Holdings Ltd - Muted set of 1QFY17 results

  • Given soft conditions in the domestic real estate space, Wing Tai’s earnings continued its downtrend over the latest quarter as the group’s 1QFY17 PATMI decreased 48% YoY to S$1.1m (versus S$2.0m in 1QFY16). 
  • Topline over the quarter similarly slipped 59% YoY to S$70.2m largely due to lower numbers from the property development division, and we also saw share of profits from JVs and associates fall 21% YoY to S$5.8m given weaker contributions from Wing Tai Properties Ltd in Hong Kong. 
  • We judge this quarter’s result to be broadly within expectations. 
  • In Sep 2016, the group acquired a freehold commercial building in Melbourne, Australia, with a site area of 1,270 sqm and we understand management is keen to explore investment opportunities in the markets it operates in. 
  • With its portfolio of prime residential and investment assets and a low gearing of 5% with S$965.7m cash, the group remains well-positioned to ride out the current down-cycle and make accretive acquisitions opportunistically. 
  • Maintain BUY with an unchanged fair value estimate of S$2.37.







Eli Lee OCBC Investment | http://www.ocbcresearch.com/ 2016-11-17
OCBC Investment SGX Stock Analyst Report BUY Maintain BUY 2.370 Same 2.370




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