WING TAI HLDGS LTD
W05.SI
Dividends lowered to further buttress balance sheet
- Wing Tai reported that its full year FY15 (ending Jun 15) PATMI decreased 41% to S$150.3m mainly due to lower YoY contributions from its development segment (The Tembusu, Le Novel Ardmore, Foresque Residences, Helios Residences and The Lakeview in China) and a weaker share of profits from Wing Tai Properties Ltd in Hong Kong.
- Adjusting for a S$21.0m gain on disposal of a subsidiary, core FY15 PATMI constituted 122% of our full year forecast which is somewhat above expectations due to the lumpy nature of progress recognition.
- FY15 revenues fell 16% YoY to S$676.7m again mainly because of softer contributions from property development (down 21% YoY to S$430.2m) and retail (down 7% YoY to S$199.0m).
- Management has declared a final dividend of 3.0 S-cents, which disappointed expectations and is 50% lower than the 6.0 Scents last year, in order to conserve cash and further buttress its already solid balance sheet.
- The group’s net gearing ratio is now at 10% versus 16% as at end of FY14. Maintain BUY with an unchanged fair value estimate of S$2.58.
Eli Lee | http://www.ocbcresearch.com/ OCBC Investment Research 2015-08-14
2.58
Same
2.58
