Highlights of Wing Tai's FY22 Results
FY22 revenue up 12% y-o-y, broadly in-line with our estimates.
- Wing Tai (SGX:W05)'s FY22 revenue of S$514.6mil, up 12% y-o-y, helped by higher contribution from development properties, largely from progressive sales from The M at Middle Road and additional units sold in Le Nouvel Ardmore.
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- As of June 2022, ~93-94% of The M at Middle Road and Le Nouvel Ardmore were sold. Going forward, we assume The M at Middle and Le Nouvel Ardmore to be fully sold by FY24F. We also assume the redevelopment and a 20% sale of the recent Lakeside Apartments en-bloc by FY24F, supporting revenue growth over the medium term.
FY22 net profit grew 222%, above our estimates.
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- Further, the FY22 effective tax rate declined to 15% (FY20/21: 76%/85%) due to the absence of one-off tax provision in previous years. Going forward, we assume an effective tax rate of 15% and associated and JV income to normalise to S$41mil/S$48mil in FY23/24F.
- In our view, we like Wing Tai’s recurring income which we believe could support the Group’s overall earnings as it navigates the property market and build its development pipeline.
FY22 dividends a positive surprise.
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