Wing Tai Holdings

[ValueMushroom]

From my calculation done last year, Wingtai Balance Sheet is great. It is trading below its "Liquidation" price. I'm monitoring this stock but not vested yet as I find the dividend yield a bit dismay.

[dxdx]

yea by book value it seems very undervalued, but as someone mentioned I think one needs to include an x% of impairment as a margin of safety, as its full value has not been realised for a long time

[ValueMushroom]

Yup true true. My liquidation price calculation does not include intangibles and inventories and other 'useless' items and applies a 50% cut for non-cash items. : )

[SLC81]

Wing Tai resumed buying back 215,7000 shares today after 1 week break.

http://infopub.sgx.com/Apps?A=COW_CorpAn...c050167697

[Hayden]

I did not research much on this industry but I believe a lot of developers have posted fair valuation gains on their investment properties for the past 6 years. However, given the recent decline in residential prices and lower office rental fees, there are not much fair valuation losses reported. As such, we can assume that the tangible assets could be slightly inflated and thus could be one of the reason for the huge discount between market price and NAV. A conservative approach would be valuing their asset at historical cost by deducting their past fair valuation gains.

It is also important to note that the 3rd parties providing these fair value evaluation are hired by the developers itself and thus present a conflict of interest. There is always the possibility that they are acting in their best interest though I have no evidence of any collusion. But it is better to be maintain prudence on that opinion. Having said that, I believe sg properties are still expensive but not bubbly. Probably, singaporeans have gotten way too rich or disillusioned with the low interest rate environment.


my 2cents. still learning.

(not vested)

[money]

its hongkong shares are carried on its balance sheet are carried at about 3x of what is currently traded on the hkse now, no impairment made for a long long time

[ngcheeki]

Disposal of Summervale Properties Pte Ltd which owns 50% of "Nouvel 18" for S$410.96 million. Wing Tai will be able to escape the QC penalty for Nouvel 18.

http://infopub.sgx.com/Apps?A=COW_CorpAn...ervale.pdf

More detail announcement from CDL

http://infopub.sgx.com/Apps?A=COW_CorpAn...072016.pdf

[SLC81]

Disposal of Summervale Properties Pte Ltd which owns 50% of "Nouvel 18" for S$410.96 million.  Wing Tai will be able to escape the QC penalty for Nouvel 18.

http://infopub.sgx.com/Apps?A=COW_CorpAn...ervale.pdf

More detail announcement from CDL

http://infopub.sgx.com/Apps?A=COW_CorpAn...072016.pdf

With additional $411 mils come in and Wingtai has been very conservation not buying any new sites,  I  would not be surprised if  the Wing Tai major share holder would attempt to privatize again.

[dxdx]

Disposal of Summervale Properties Pte Ltd which owns 50% of "Nouvel 18" for S$410.96 million.  Wing Tai will be able to escape the QC penalty for Nouvel 18.

http://infopub.sgx.com/Apps?A=COW_CorpAn...ervale.pdf

More detail announcement from CDL

http://infopub.sgx.com/Apps?A=COW_CorpAn...072016.pdf

With additional $411 mils come in and Wingtai has been very conservation not buying any new sites,  I  would not be surprised if  the Wing Tai major share holder would attempt to privatize again.

when was the last privatization attempt, and why did it fail?

the way i see it, since they have no need to worry about the duties/fees, there is no hurry to privatise as yet.

[dxdx]

Deutsche Markets Research just initiated a BUY call on WT.