CWT Limited delivered a strong set of 1Q14 earnings. 1Q14 revenue increased 207% YoY to S$4,536b while PATMI is 30% higher at S$35.0m, forming 25.6% of our FY14 forecast. Excluding our house’s net income forecast, which is the highest on the street (14.8% above the next highest, according to Bloomberg), CWT’s 1Q14 net income of S$36.1m would have formed 32.5% of the remaining analysts’ FY14 forecast, beating their expectations.

Considering that CWT will see further earnings from two more TOPs this year (CWT Cold Hub 2 in 2Q14 and Pandan Logistics Centre in 4Q14), we think the stock will re-rate upwards. We re-iterate our BUY call but keep our S$1.87 fair value estimate under review as we speak to management later.

Source: OCBC Research - 15 May 2014