HIGH-END LIVING: Wing Tai’s revenue rose by 42 per cent year-on-year or 52 per cent quarter-on-quarter, driven by Verticas Residensi. The development has seen good responses with 70 per cent sold out at RM1,100 per square foot, and was currently at 51 per cent construction progress.
KUCHING: Wing Tai Malaysia Bhd (Wing Tai) recorded second quarter of financial year 2012 profits of RM31 million, coming in above expectations with more property launches in the pipeline.
“The second quarter profits came in at RM31 million, constituting 56 per cent of our full-year estimates,” HwangDBS Vickers Research Sdn Bhd (HwangDBS Vickers) noted in its research report.
The research house noted that Wing Tai’s revenue had risen by 42 per cent year-on-year or 52 per cent quarter-on-quarter, driven by Verticas Residensi. The development had seen good responses with 70 per cent sold out at RM1,100 per square foot, and was currently at 51 per cent construction progress.
According to the report, the earnings before interest and tax (EBIT) margin had seen improvement from 24.8 per cent last quarter to 28.9 per cent which was attributed to increased contribution from higher-end projects.
“Wing Tai has a few other upcoming launches, including Nobleton Crest high-end condominiums in U-Thant, Sunway semi-detached units and Le Nouvel luxury condominiums oppposite the Petronas Twin Towers,” HwangDBS Vickers stated.
It explained that Wing Tai was also looking out for sizeable landbank in Klang Valley and had been gradually expanding its Penang mainland township at the fringes.
The report highlighted that funding would not be a problem for the company as it maintained a strong balance sheet with a net gearing of 19 per cent, there would also be support from Verticas Residensi’s unbilled sales.
HwangDBS went on to raise its financial year 2012 and 2013 forecast earnings by 16 to 17 per cent to factor in faster construction progress for Verticas Residensi and Nobleton Crest.
It also pegged a target price of RM1.50 per share based on 65 per cent discount to the revalued net asset value of RM4.19.