We are ceasing coverage on Wing Tai due to internal resource reallocation. We believe the market is unlikely to re-rate the stock anytime soon, with relatively soft market sentiment and lack of earnings visibility in the property development segment. Meanwhile, its apparel retailing business has faced squeezed margins over the past few quarters. Our last call for the stock was NEUTRAL, with a MYR1.76 TP.

Ceasing coverage. We project for Wing Tai Malaysia’s (Wing Tai) core net profit to contract by 10% YoY in FY15 (Jun) on the back of a soft performance from its property development division and squeezed margins in its apparel retailing business. The latter is amidst soft sentiment in the consumer market after the implementation of the goods and services tax (GST) on 1 Apr 2015. We are ceasing coverage on Wing Tai due to internal resource reallocation. Our last recommendation for the company was NEUTRAL, with a TP of MYR1.76.