Wing Tai eyes more share buybacks as market conditions languish
It has significant capital headroom, analysts say.
Undervalued property developer Wing Tai might roll out another share buyback exercise if its share price remains low, according to a report by OCBC Investment Research.
Wing Tai entered the market four times in Q3 to purchase $1.0m of shares, after its price-to-book ratio dipped below its long-term average.
"With a relatively low net debt to equity at 9.2% and S$880m in cash, the group has significant capital headroom. In our view, its current share price at a 58% discount to book and 57% discount to RNAV represents solid long term value, and the company’s share buyback represent an effective use of its capital, particularly as the real estate sector in its key markets slow down and opportunities for capital deployment over the near term dwindle," said the report.
Wing Tai currently owns 24 major residential and commercial developments, manages 8 investment properties, and operates a total of 9 management contracts under the Lanson Place brand.
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