Company visit – Share price to play catch up with
fundamentals; RNAV and price target upgrades

Performance (%):Wing Tai has achieved good sales and higher-than-expected
prices for some of its projects over the past 3-6 months, hence the upgrades in
forecasts

Its recent acquisitions - Phoenix Mansion and Belle Vue - have also seen
increases in values, as both were acquired before the run-up in property prices.

In addition, Phoenix Mansion site has seen a doubling in GFA as management
has recently acquired some adjoining sites (at slightly lower prices).

Its investment properties have benefited from the recovery in the office market,
and some renewals have seen some 30% increase in rates

Associate Winsor Properties has seen a 50% increase in share price over the
past 3 months, another reason for the RNAV upgrade

With proceeds from sales of Park Mall and residential projects, gearing is 75%
(vs. >200% in the past) and balance sheet is now the strongest ever.

Wing Tai has underperformed the sector over the past 3 months. Share price
is now at 62% and 25% below its peak levels in 1997 and 1999. respectively,
highest in the sector. With the stock trading at 21% discount to RNAV, we see
value in the stock at the current price level. Reiterate Buy on new price target
of S$2.11, based on parity to our upgraded RNAV of S$2.11.