Wing Tai

[winston]

vested

Wing Tai wins over Analyst's with compelling Valuation and Healthy Balance Sheet

Source: The Edge

https://www.theedgesingapore.com/wing-t ... d-87358173

[winston]

not vested

Wing Tai – BUY

BUY with RNAV-based target price of S$2.61. Our target price is pegged at a 25% discount to our RNAV of S$3.48/share. Wing Tai is trading at 0.52x P/B (lowest within our coverage) and a deep 39% discount to our RNAV.

Wing Tai has a low gearing of 2.4% (lowest within our coverage), positioning it well to deploy its sizeable debt headroom of S$1.5b (assuming comfortable net gearing level of 50%). We believe Wing Tai will further deepen its footprint in Singapore, Malaysia (post privatisation completion) and Australia.

Share Price Catalyst

Event: Launch of the recently-acquired Serangoon North Avenue 1 site. Wing Tai plans to develop over 600 homes on the 99-year leasehold site with a GFA of 462,561sf, situated within a mature residential estate in the Serangoon Garden area.

We also see potential for Wing Tai to buy more landbank given its S$1.5b acquisition headroom.

Timeline: Potential 6-9 months for landbank acquisition or launch of its Serangoon North
Avenue 1 site.

Source: UOBKH

[winston]

not vested

Wing Tai Holdings Ltd: Firm set of 1QFY18 results

Wing Tai’s 1QFY18 PATMI increased from S$1.1m to S$8.2m YoY mainly due to contributions from Le Nouvel Ardmore, Le Nouvel KLCC as well as disposal gains on the Huai Hai project in Shanghai.

In terms of the topline, however, 1QFY18 revenues decreased 4% YoY to S$67.1m as the group recorded lower homes sales over the quarter. Overall, we judge 1QFY18 results to be broadly within expectations.

We now forecast for Singapore home prices to appreciate 1% in 2017 and 3% to 8% in 2018 and, given the group’s ample dry powder, believe that Wing Tai is well positioned to benefit from the turnaround in the domestic housing sector.

Notwithstanding a 46% appreciation over the year to date, we see the group’s current share price to be relatively undemanding at 0.57x price-to-book.

After updating our valuation model with our latest assumptions and firmer average selling prices, our fair value estimate increases from S$2.37 to S$2.77.

Source: OCBC

[behappyalways]

wing-tais-1q-earnings-rise-nearly-eightfold-82-mil
https://www.theedgesingapore.com/wing-t ... old-82-mil

not vested

Wing Tai Holdings Ltd: Firm set of 1QFY18 results

Wing Tai’s 1QFY18 PATMI increased from S$1.1m to S$8.2m YoY mainly due to contributions from Le Nouvel Ardmore, Le Nouvel KLCC as well as disposal gains on the Huai Hai project in Shanghai.

In terms of the topline, however, 1QFY18 revenues decreased 4% YoY to S$67.1m as the group recorded lower homes sales over the quarter. Overall, we judge 1QFY18 results to be broadly within expectations.

We now forecast for Singapore home prices to appreciate 1% in 2017 and 3% to 8% in 2018 and, given the group’s ample dry powder, believe that Wing Tai is well positioned to benefit from the turnaround in the domestic housing sector.

Notwithstanding a 46% appreciation over the year to date, we see the group’s current share price to be relatively undemanding at 0.57x price-to-book.

After updating our valuation model with our latest assumptions and firmer average selling prices, our fair value estimate increases from S$2.37 to S$2.77.

Source: OCBC

[winston]

not vested

Wing Tai – BUY

BUY with RNAV-based target price of S$2.61, pegged at a 25% discount to RNAV of
S$3.48/share. Wing Tai is trading at 0.61x 2017F P/B (lowest within our coverage) and a
deep 39% discount to RNAV.

Wing Tai has a low gearing of 2.4% (lowest within our coverage), positioning it well to
deploy its sizeable debt headroom of S$1.5b (assuming comfortable net gearing level of
50%).

We believe Wing Tai will further deepen its footprint in Singapore, Malaysia (post
privatisation completion) and Australia.

Share Price Catalyst

Event: Launch of the recently-acquired Serangoon North Avenue 1 site. We also see
potential for Wing Tai to buy more landbank given its S$1.5b acquisition headroom.

Timeline: Potential 6-9 months for landbank acquisition or launch of its Serangoon North
Avenue 1 site.

Source: UOBKH

[winston]

not vested

Wing Tai Holdings Ltd: Valuations not reflective of the cycle

Wing Tai’s 2QFY18 revenue rose by 113% YoY to S$130.0m, aided by the contribution from additional units sold in Le Nouvel Ardmore in Singapore, Le Nouvel KLCC in Kuala Lumpur, as well as contribution from BM Mahkota in Penang.

PATMI for 2QFY18 came in at S$12.6m (as compared to S$2.1m in the corresponding quarter last year), representing 23.0% of our full-year forecast.

We deem this set of results to be broadly within expectations. In our view, Wing Tai should be suitably positioned to ride on the property upturn, given that the group’s balance sheet remains robust, as it continues to be in a net cash position.

Wing Tai currently trades at a consensus blended forward P/B of 0.50x, which is 0.4 S.D. below the 10-year mean.

We believe that the recent market correction has resulted in attractive valuations for Wing Tai, given the current stage of the property cycle.

Source: OCBC

[behappyalways]

Wing Tai records sixfold rise in 2Q earnings to $12.6 mil
https://www.theedgesingapore.com/wing-t ... gs-126-mil

[behappyalways]

Wing Tai jointly acquires Melbourne office building for $97.2 mil
https://www.theedgesingapore.com/wing-t ... ng-972-mil

[behappyalways]

Wing Tai reports eightfold surge in 9M earnings to $89 mil from disposal gain
https://www.theedgesingapore.com/wing-t ... posal-gain

[behappyalways]

Wing Tai's FY18 earnings surge 11-fold to $218.8 mil on higher property-related gains
https://www.theedgesingapore.com/wing-t ... ated-gains