True that its debt is high but its assets are real estates/land banks. In fact, their debt equity ratio is better than capitaland.
THis discount is subject to higher risk, because Wing Tai is mostly residential.
compared with HK Land, which is has about 65% commercial property, and their rental rate has been very firm due to short of prime space shortage in HK.
Many of the developers now have net gearing < 20%. WIng Tai has many WIP units unsold? I dont think they are active in SIngapore i bidding
(05-02-2014, 07:25 PM)ngcheeki Wrote: [ -> ]Finally, a share buyback of 400 lots @ 1.72814 conducted by Wing Tai after so many years of absence!!
http://infopub.sgx.com/Apps?A=COW_Corpor...vIfLdLwGSo
I just noticed that also how come they do share buyback? try to prop up price? they should pay back loans first with spare monies.
BlueKelah Wrote:I just noticed that also how come they do share buyback? try to prop up price? they should pay back loans first with spare monies.
Likely buying for employee share options to reward employees because they deem it 'cheap'
(05-02-2014, 07:32 PM)BlueKelah Wrote: [ -> ] (05-02-2014, 07:25 PM)ngcheeki Wrote: [ -> ]Finally, a share buyback of 400 lots @ 1.72814 conducted by Wing Tai after so many years of absence!!
http://infopub.sgx.com/Apps?A=COW_Corpor...vIfLdLwGSo
I just noticed that also how come they do share buyback? try to prop up price? they should pay back loans first with spare monies.
Maybe debt got covenant against market cap?
In one of the AGM FY FY2012, a shareholder queried CWK why Wing Tai does not buyback their shares when it was S$1 and his reply was.
"The company did not buyback its shares during the last financial year when the share price is sub $1 for 2 reasons. Number 1, the company already has large enough treasury shares of around 12 million shares and 2: Share buyback might trigger Takeover SGX rules for major shareholder prior the successful partial GO by the Ascend Capital Limited (Cheng Brothers)."
Since now Cheng Brothers already owned > 50% of Wing Tai, #2 reason is no longer valid. Wing Tai treasury share last announced is 7,838,300 shares.
http://infopub.sgx.com/FileOpen/Notice_o...eID=267288
Update: The Crest July 2014
Cumulative Units Sold to-date: 39
Median Price ($psf) in the Month: 1710
Units sold in the month: 7
Cumulative Units Launched but Unsold: 93
Total Number of Units: 469