CIMB cuts Wing Tai price target

Stock Name: Wing Tai
Company Name: WING TAI HLDGS LTD

Research House: CIMB

Price Call: BUY

Target Price: 1.51

CIMB Research cut its share-price target on Singapore-listed retailer and property developer Wing Tai Holdings (WTHS.SI) to $1.51 from $1.93 and kept its “outperform” rating on the stock.

CIMB Research cut its target price to account for lower average selling prices of the company’s residential units.

Wing Tai Holdings said on Monday its fourth-quarter net profit more than doubled to $170.6 million.

The company has proposed a final dividend of 7 cents for the year, implying an attractive yield of 5.5%, CIMB said.

Sales of its residential units, especially those priced at the higher end, could remain sluggish, but Wing Tai is in a strong financial position to weather any slowdown in the property market, CIMB said.

At 9:24 a.m., shares of Wing Tai were 6.8% higher at $1.34. They have fallen 20.4% since the start of the year.