Wing Tai’s 4QFY19 revenue fell 41% YoY to S$63.4m, dragged by lower contributions from development properties (-24.1% YoY). FY19 revenue fell 10% YoY to S$322.6m. 4QFY19 PATMI declined 86% YoY to S$18.1m, while FY19 PATMI fell 79% YoY to S$46.8. The latter formed 87% of our initial full year forecast, which we considered to be below our expectations.

The decrease in PATMI was mainly attributable to the absence of one-off gain on the disposal of a subsidiary company and also due to lower contribution from Wing Tai Properties Limited in Hong Kong. A full-year dividend of 8 cents per share was declared, unchanged from last year.

We currently place our BUY rating and fair value estimate of S$2.41 under review.

Source: OCBC Research - 28 Aug 2019