| UOB KAYHIAN |
MAYBANK KIM ENG |
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3QFY19: Robust ICE Growth Held The Fort; Expect Softer FY20
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Far East Hospitality Trust (FEHT SP)
4QFY18 recovery; RevPAR ramp-up ahead
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| OCBC | CGS CIMB |
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Wing Tai Holdings Ltd: Looking abroad Wing Tai’s 1HFY19 revenue rose 7% YoY to S$193.9m, largely due to increased property sales in Malaysia. The group’s 1HFY19 PBT fell 323% to S$16.4m due largely to the absence of one-off disposal gain in 1HFY18. All considered, PATMI fell 14% to S$18.2m. Taking into account one-offs, we deem this set of results to be broadly within our expectations. The Garden Residences faces stiff competition in the area from both existing and upcoming projects. Still, we have been encouraged by the increased interest since the announcement of the future Serangoon North MRT station, slated to be in the vicinity of the project. Moving forward, we believe the group will train its sights on commercial properties overseas such as those in Australia or Japan, aided by its net cash position. Wing Tai currently trades at a consensus blended forward P/B of 0.46x, which is 0.6 S.D. below the 10-year mean. We maintain our BUY rating and fair value of S$2.41. |
■ 1QFY9/19 core EPS of 4.56 Scts was above expectations, at 36.6% of our FY19F forecast. ■ Yoy earnings improvements across all business segments, led by Australian residential. ■ Maintain Add with an unchanged TP of S$2.08.
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