Wing Tai’s first quarter not one worth remembering

SINGAPORE (Oct 28): Maybank Kim Eng is maintaining its “hold” rating on Wing Tai Holdings as it sees “limited upside” for the developer despite low valuations of 0.4 times book value. The research house is recommending investors look at Capitaland instead.

“We continue to see poor earnings visibility with slow residential sales and persistent headwinds to its retail operations,” says Maybank Kim Eng analyst Derrick Heng in a Friday note.

Heng says sales of Wing Tai’s remaining unsold residential units could slow down as the developer is still holding its prices on Le Nouvel Ardmore, while The Tembusu, which has already received its temporary occupation permit in Sept, has nine unsold units.

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