UOBkayhian on 29 Aug 2014
FY15F PE (x): 9.8
FY16F PE (x): 9.3
Results above expectations. Wing Tai reported 4QFY14 net profit of S$153.8m, down
47% yoy, bringing FY14 net profit to S$276.3m (-53% yoy). Core net profit of S$204m
excluding fair-value gains (S$52.1m) and effect of a change in accounting policy
(S$20.9m) was above expectations. The strong contribution from development
properties was underpinned by earnings recognised from Foresque Residences, Le
Nouvel Ardmore, L’VIV, Helios Residences in Singapore as well as Verticas
Residences in Malaysia and The Lakeview in China.
Maintain BUY and target price of S$2.50, pegged at a 30% discount to our higher
RNAV of S$3.57/share (from S$3.33) as we roll forward valuation. The discount has
increased to 30% (from 25%) to factor in the even weak home buying and retail
sentiment and the risk of extension charges. We believe the negatives are more than
priced in.
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