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SINGAPORE EQUITY
Investment Research
DMG & Partners Research 1Q11 Results Review Private Circulation Only
LOGISTICS
Selena Leong
CWT: S$1.29 BUY (TP: S$1.45)
New warehouse in the pipeline
CWT's 1Q11 results were in line with our expectations, making up 20.4% of our FY11 estimates. Earnings were down 27.9% YoY mainly due to start-up costs from its expansion into the commodity business, lower depreciation in 1Q10 and a change in revenue composition with the coal supply chain management business. We remain positive over CWT’s long term prospects with its continued business development initiatives which include the development of a new warehouse. Maintain BUY and TP at S$1.45, based on 20.8x FY11 earnings (a 20% discount to global peers’ 7-year historical average).
An expected fall in earnings. CWT’s 1Q11 earnings were down 27.9% YoY, coming in at S$8.4m. Start-up costs from the expansion into the commodity futures brokerage and commodity supply chain management business, no depreciation in 1Q10 for two properties under the sale and leaseback agreement, a change in revenue composition with the coal supply chain management business and the absence of the resilence budget saving and a one-off gain from disposal from an associate in 1Q11 contributed to the drop in earnings. Revenue jumped 13.1% YoY to S$189m, attributable to an increase in business activities on the whole and coal supply chain management business.
Update on warehouses. CWT is building a new 725k sqf CWT Cold Hub 2, along a recently acquired land along Fishery Port Road. The company targets to complete Cold Hub 2 in Jan 2013 and it is expected to cost ~S$100m. Pandan Logistics Hub is targeted to be completed in 4Q11 and Logistics Hub 3’s customers will be commencing operations there within the next two months.
New business initiatives. CWT is developing a S$10m transport hub (Transhub) that provides a multi-modal hub for loaded containers and facilities for chassis parking. Transhub provides shared resources for local hauliers to improve efficiency through sharing of resources and better management of trucking operations. Phase 1 construction for container storage, is expected to be completed by 3Q11. Phase 2 comprising of a vertical chassis parking facilities and additional container storage area, is expected to be completed by 1Q12.
Still looking positive for this one !
No sure what is going on... My wife told me not to panic..
Sori, I mean now S$1.3 !!!
knightrider ( Date: 29-Apr-2011 17:04) Posted:
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Walau, just because of XD, it come down S$0.06, no logic, the CD only S$0.025 ! Overdone !!!! Now only S$0.131.
HI folks...can anyone advise...is this better than cse?
knightrider
Siao Liao...1.41...going strong..
going up....
1.42, then 1.5...
" mg chai leh" - " don't know ! But today morning Ch 8, on money investing. mention that shipping, marine stocks to surge, thus, logistic and warehousing is related to shipping, thus it also move ! My guess, I will continue to hold on to S$2 at least. Good Luck.
davidoch ( Date: 18-Apr-2011 10:26) Posted:
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knightrider ,
any brewing , why there is surge ?
knightrider ( Date: 05-Apr-2011 12:29) Posted:
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Knightrider,
CWT Siao Liao...up..up....all the way..
knightrider ( Date: 22-Feb-2011 12:09) Posted:
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knightrider ( Date: 22-Feb-2011 10:11) Posted:
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Did u attend the AGM ? I attended.
The management is a truth businessman, I will hold this counter and collect the coming dividends. If the economy is alright, no special disasters, then this counter will hit S$2 to S$2.50 then I cash out.
BTW, I hold this counter for 16yrs liao, recent accumulative is to add higher steak in my investment. I added at S$1.22, S$1.21 etc. Good Luck.
Knightrider ,
me too. ave at 1.16 not sure when shoudl get out?
knightrider ( Date: 22-Feb-2011 16:00) Posted:
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knightrider ( Date: 22-Feb-2011 16:38) Posted:
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Siao liao, up another 0.06 cts. Those vested, congra. 
S$1.3 liao !!!
fragaria ( Date: 04-Apr-2011 15:33) Posted:
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