Stock Buy Call: Wing Tai Holding with price target of 2.22 by UOB Kay Hian

UOB Kay Hian says it has raised its rating for property developer Wing Tai Holdings Ltd to "buy" and increased its 12-month target price to 2.22 sgd per share in anticipation of a sustained upswing in the high-end residential market here and a recovery in the broader housing market. The research house did not give its previous rating and target price for the stock. UOB Kay Hian said in a note that prices of luxury residences here had risen to an average of 1,670 sgd per square foot, the highest in nine years, and that interest by foreign buyers should continue to bolster demand for high-end residences. It said that the range of developments in which Wing Tai will begin selling units in the financial year ending next June placed it in a favourable position to exploit the recovery in the property market. "We raise our [year to June] 2007 net profit forecast from 53.8 mln sgd to 122.7 mln sgd, and hence also lift our revised net asset value estimate from 1.53 sgd to 2.02 sgd to factor-in the higher earnings," it said. At 10.52 am, Wing Tai was up 0.07 sgd or 3.7 pct at 1.96, on volume of 2. 18 mln shares.