HwangDBS raises Wing Tai's target price

Stock Name: WINGTM
Company Name: WING TAI MALAYSIA BERHAD

Research House: HWANGDBS

Price Call: BUY

Target Price: 2.10

HwangDBS Vickers Research raised its target price on shares of property and garment retail company Wing Tai Malaysia Bhd to RM2.55 from RM2.10, citing a robust sales outlook.

Wing Tai is "ripe for another big launch" in Malaysia's capital city, Kuala Lumpur, and its earnings will be propped up by ongoing projects in the northern state of Penang, HwangDBS said in a note on Friday.

"Share price should be supported by continual share buybacks," HwangDBS said, which includes purchases by parent Wing Tai Holdings Ltd.

The research house kept its 'buy' call on the stock.

Shares in Wing Tai Malaysia rose 2.45 per cent, outperforming the Malaysian benchmark stock index's 0.13 fall.-- Reuters

Wing Tai a 'buy' says HwangDBS

Stock Name: WINGTM
Company Name: WING TAI MALAYSIA BERHAD

Research House: HWANGDBS

Price Call: BUY

Target Price: 2.30

HwangDBS Vickers Research Sdn Bhd has maintained its "buy" call on Wing Tai Malaysia Bhd (WTM) with a target price of RM2.30.

This follows the company's mass landed residential project on mainland Penang seeing robust sales at new benchmark prices.

Over the years, WTM has successfully transformed itself from a garment manufacturer, to an established property developer and an apparel retailing group.

In a note today, the research house said with 169 acres of landbank remaining in Bukit Mertajam, WTM stands to benefit from rising land value, driven by the completion of the second Penang bridge and robust foreign direct investment's into Penang.

"Retail has been expanding strongly to make up 30 per cent of first half financial year 2013 earnings before interest and taxes (EBIT).

"We expect growth to be sustained at 10 to 15 per cent driven by additional stores and new brands," it added.

Meanwhile, OSK Research has maintained its "buy" call on WTM with a revised target price to RM2.25.

The research house said it sees a potential higher sales contribution from WTM's resilient Penang property division, after the full completion of the second Penang bridge by the first quarter of 2013.

"WTM's second quarter financial year 2013 results improved
month-on-month and year-on-year (y-o-y).

"Its top line expanded 50.3 per cent quarter on quarter and 23.7 per cent y-o-y to RM154.4 million, driven by higher contribution from its property development and retail divisions," it added. It said the company's fundamentals remain intact. -- Bernama

WINGTAI - Sizing up

Stock Name: WINGTM
Company Name: WING TAI MALAYSIA BERHAD

Research House: HWANGDBS

Price Call: BUY

Target Price: 1.50

Wing Tai Malaysia; Fully Valued; RM1.68
Price Target: RM1.50; WING MK

2Q12 results above expectation, raise FY12-13F earnings by 16-17%. Looking for bigger parcels of land in Klang Valley. Maintain Fully Valued and RM1.50 TP.

Source: HwangDBS Research 17 Feb 2012