WINGTM (2976) : AllianceDBS maintains Hold on Wing Tai, lowers target priceto RM2
KUALA LUMPUR (Nov 19): AllianceDBS Research has maintained ist Hold rating on Wing Tai Malaysia Bhd (WTM) at RM2.02 with a lower target price of RM2 (from RM2.10) and said that excluding RM20 million gain on disposal of 25% interest in PT Windas Development, WTM’s core profit came in at RM11.1 million (-51% q-o-q, -29% y-o-y).
In a note Wednesday, the research house said this was only 14% of its FY15 forecast, due to delays in new launches as well as margin compression at the retail business.
“It remains unclear when the Le Nouvel project @ KLCC (RM1 billion GDV) will be launched, although construction will be completed next year. We suspect the delay might be due to concerns over potentially poor reponse given the high unit price of more than RM4 million (1,800-2,800sf built-up).
“WTM’s retail sales may be dampened by more cautious discretionary spending in view of the implementation of GST by Apr15. Also, margins have been affected by rising inflationary pressures, notwithstanding the softer market demand,” it said.
http://www.theedgemarkets.com/en/node/170445
KUALA LUMPUR (Nov 19): AllianceDBS Research has maintained ist Hold rating on Wing Tai Malaysia Bhd (WTM) at RM2.02 with a lower target price of RM2 (from RM2.10) and said that excluding RM20 million gain on disposal of 25% interest in PT Windas Development, WTM’s core profit came in at RM11.1 million (-51% q-o-q, -29% y-o-y).
In a note Wednesday, the research house said this was only 14% of its FY15 forecast, due to delays in new launches as well as margin compression at the retail business.
“It remains unclear when the Le Nouvel project @ KLCC (RM1 billion GDV) will be launched, although construction will be completed next year. We suspect the delay might be due to concerns over potentially poor reponse given the high unit price of more than RM4 million (1,800-2,800sf built-up).
“WTM’s retail sales may be dampened by more cautious discretionary spending in view of the implementation of GST by Apr15. Also, margins have been affected by rising inflationary pressures, notwithstanding the softer market demand,” it said.
http://www.theedgemarkets.com/en/node/170445
