Wing Tai’s 1HFY13 results were slightly below our and street estimates. The 1H revenue of RM257.2m came within our expectations, accounting for 48.4%/47.2% of our and consensus forecasts. However, its RM40.8m net profit slightly missed our estimates, making up 44.9% of our full-year target, mainly due to higher depreciation and marketing expenses from the opening of 12 new stores in 1HFY13. We are leaving our forecasts unchanged but revising our target price to RM2.25, pegged to its property development segment with a higher PE of 9x. We see potential higher sales contribution from its resilient Penang residential property division after the full completion of the Second Bridge of Penang by 1Q 2013. Jabatan Kedua Sdn Bhd revealed that the 16.9km bridge was 80% completed in June last year, and full completion is slated by end-January this year.
Bottom-line slightly misses target on higher depreciation & expenses. Wing Tai’s 1HFY13 bottom-line was slightly below our and street estimates. The 1H top-line was in line, with revenue of RM257.2m accounting for about 48.4%/47.2% of our and consensus forecasts. However, its net profit of RM40.8m missed estimates, making up about 44.9%/46.4% of our and street full-year targets, mainly due to higher depreciation and marketing expenses from the opening of 12 new stores in 1HFY13. PBT margin from the retail division dropped from 24.8% in 1HFY12 to 21.6% in 1HFY13.
2QFY13 results improve. Wing Tai’s 2QFY13 results improved m-o-m and y-o-y. Its top-line expanded 50.3% q-o-q and 23.7% y-o-y to RM154.4m, driven by higher contribution from its property development and retail divisions. Higher revenue recognition from the group’s Verticas Residensi, Jesselton Hills, BM Utama and Taman Seri Impian projects contributed to its property development segment. PBT margin from the division remained healthy at 30.5% in 1HFY13 versus 30.1% in the corresponding period of last year. 1HFY13 net profit rose 15.2% to RM52.6m on the back of a 24.4% increase in revenue to RM257.2m. Revenue from the company’s associates jumped 89.0% y-o-y to RM6.1m in 1HFY13, partially due to higher contribution from Uniqlo.
Maintain BUY, FV revised to RM2.25. We are leaving our FY13 forecasts unchanged for now. However, we are revising our target price to RM2.25, pegged to its property development segment with a higher PE of 9x, from 8x previously. The company’s fundamentals remain intact. Furthermore, we see potential higher sales contribution from its resilient Penang residential property division after the full completion of the Second Bridge of Penang by 1Q 2013. Jabatan Kedua Sdn Bhd, a special purpose concession company who is in-charge of overseeing the Second Bridge, revealed that the 16.9km bridge was 80% completed in June last year, and full completion is slated by end-January this year. Wing Tai is trading at a 5.1x PE to its FY13f earnings and is trading below its NTA of RM3.00.
Bottom-line slightly misses target on higher depreciation & expenses. Wing Tai’s 1HFY13 bottom-line was slightly below our and street estimates. The 1H top-line was in line, with revenue of RM257.2m accounting for about 48.4%/47.2% of our and consensus forecasts. However, its net profit of RM40.8m missed estimates, making up about 44.9%/46.4% of our and street full-year targets, mainly due to higher depreciation and marketing expenses from the opening of 12 new stores in 1HFY13. PBT margin from the retail division dropped from 24.8% in 1HFY12 to 21.6% in 1HFY13.
2QFY13 results improve. Wing Tai’s 2QFY13 results improved m-o-m and y-o-y. Its top-line expanded 50.3% q-o-q and 23.7% y-o-y to RM154.4m, driven by higher contribution from its property development and retail divisions. Higher revenue recognition from the group’s Verticas Residensi, Jesselton Hills, BM Utama and Taman Seri Impian projects contributed to its property development segment. PBT margin from the division remained healthy at 30.5% in 1HFY13 versus 30.1% in the corresponding period of last year. 1HFY13 net profit rose 15.2% to RM52.6m on the back of a 24.4% increase in revenue to RM257.2m. Revenue from the company’s associates jumped 89.0% y-o-y to RM6.1m in 1HFY13, partially due to higher contribution from Uniqlo.
Maintain BUY, FV revised to RM2.25. We are leaving our FY13 forecasts unchanged for now. However, we are revising our target price to RM2.25, pegged to its property development segment with a higher PE of 9x, from 8x previously. The company’s fundamentals remain intact. Furthermore, we see potential higher sales contribution from its resilient Penang residential property division after the full completion of the Second Bridge of Penang by 1Q 2013. Jabatan Kedua Sdn Bhd, a special purpose concession company who is in-charge of overseeing the Second Bridge, revealed that the 16.9km bridge was 80% completed in June last year, and full completion is slated by end-January this year. Wing Tai is trading at a 5.1x PE to its FY13f earnings and is trading below its NTA of RM3.00.
Source: OSK
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