Wing Tai’s 9M19 revenue rose 2% YoY to S$259.2m, mainly attributable to its increased property sales in Malaysia. The group’s PBT dropped from S$97.1m in 9M18 to S$28.1m in 9M19, primarily due to the absence of a one-off gain on the disposal of a subsidiary company as well as the lower contribution from Wing Tai Properties Limited in Hong Kong.

The latter’s contribution to the group’s share of profits from JVs and associates fell as the corresponding period last year included a one-off gain on disposal of its interest in Winner Godown Building, an industrial building in Tsuen Wan.

9M19 PATMI came in at S$28.4m, or 52.7% of our full-year forecast; we deem this to be under our expectations. The group was awarded the tender for a land parcel at Middle Road, Singapore, and plans to develop it as a residential development with commercial uses at the first storey.

We maintain our BUY rating and fair value of S$2.41 for now.

Source: OCBC Research - 13 May 2019