Maybank has kept Wing Tai at “buy” with a $2.25 target price as it continues to see “deep value” in the stock.
To be sure, Wing Tai’s 1QFY16 net income of $2 million came in below expectations at only 2% of FY16E.
The quarter’s 6% higher revenue of $170 million was driven by progressive recognition from The Tembusu, Le Nouvel Ardmore in Singapore, The Lakeview in China and Jesselton Hills in Penang.
In a report out on Thursday, analyst Derrick Heng says the lacklustre set of results reflects the challenging market conditions and near-term headwinds could persist.
“The Crest, its 40% JV project at Prince Charles Crescent, could be forced to lower asking prices given competition from the impending launch of Principal Garden, a nearby UOL project,” says Heng.
That said, Maybank has already built price reductions into our forecasts.
“We maintain our forecasts on expectations of higher recognition of project revenue in the next few quarters,” adds Heng.
Wing Tai is down 0.56% at $1.765.
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To be sure, Wing Tai’s 1QFY16 net income of $2 million came in below expectations at only 2% of FY16E.
The quarter’s 6% higher revenue of $170 million was driven by progressive recognition from The Tembusu, Le Nouvel Ardmore in Singapore, The Lakeview in China and Jesselton Hills in Penang.
In a report out on Thursday, analyst Derrick Heng says the lacklustre set of results reflects the challenging market conditions and near-term headwinds could persist.
“The Crest, its 40% JV project at Prince Charles Crescent, could be forced to lower asking prices given competition from the impending launch of Principal Garden, a nearby UOL project,” says Heng.
That said, Maybank has already built price reductions into our forecasts.
“We maintain our forecasts on expectations of higher recognition of project revenue in the next few quarters,” adds Heng.
Wing Tai is down 0.56% at $1.765.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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