3Q08 Results Update

Results largely in line with forecast. CWT reported its 3Q08 results with PATMI of $55.1m, up 722% y-o-y. The results include a one time gain of $55.7m from the sale and leaseback of CWT Logistics Hub 2 and $6.7m from its divestment of shares in Cambridge Industrial Trust Management (CITM).

Margins could improve further. Gross margin was stable and comparable to the last quarter. We continue to take the view that margins could improve further as we expect the logistics business, particularly its commodity logistics to have an increasing contribution to its overall business.

Maintain BUY with target price of $0.538.