DBS Group Research analysts Derek Tan and Rachel Tan have maintained their “buy” recommendation for Wing Tai Holdings with an unchanged target price (TP) of $2.05.
In their report dated Aug 29, the analysts note that Wing Tai’s FY2022 net profit “surged” by 222%, driven by higher contributions from associated and joint venture (JV) income from Wing Tai Properties Limited and Uniqlo JVs, while FY2022 revenue was up 12% year-on-year (y-o-y), broadly in-line with their estimates.
Their TP of $2.05 implies a price to net asset value (P/NAV) ratio of 0.48x, which is 1 standard deviations (s.d.) above Wing Tai’s four-year historical P/NAV ratios, while their valuation is based on a sum-of-the-parts revalued net asset value (RNAV) with a 50% holdings discount.
