[%iZsS%] 
Research by HLIB
BUY – TPRM1.50

" Encouraging REIT progress”

We are positive on WCT's intended Paradigm REIT listing. The inclusion of three retail assets with 98.6% average occupancy rate and RM2.44bn valuation (vs MCap: RM1.6bn), is expected to generate RM1.38bn in net proceeds. This exercise can: (i) reduce net gearing to 0.33x from 0.73x (ii) enhance profitability through interest payment reduction ~RM50m pa and (iii) create balance sheet space for Subang airport project. Development is a catalyst for narrowing wide P/B multiple discount (~55%). No change to forecasts. Maintain BUY rating with slightly higher TP of RM1.50 adjusting for higher-than-expected asset valuation partially offset by placement dilution.

Analyst:  
Edwin Woo, CFA
[%sFdA%]

$KLSE-WCT 
Research by HLIB
BUY – TPRM1.50

" Encouraging REIT progress”

We are positive on WCT's intended Paradigm REIT listing. The inclusion of three retail assets with 98.6% average occupancy rate and RM2.44bn valuation (vs MCap: RM1.6bn), is expected to generate RM1.38bn in net proceeds. This exercise can: (i) reduce net gearing to 0.33x from 0.73x (ii) enhance profitability through interest payment reduction ~RM50m pa and (iii) create balance sheet space for Subang airport project. Development is a catalyst for narrowing wide P/B multiple discount (~55%). No change to forecasts. Maintain BUY rating with slightly higher TP of RM1.50 adjusting for higher-than-expected asset valuation partially offset by placement dilution.

Analyst:  
Edwin Woo, CFA
ckwoo@hlib.hongleong.com.my