Will Wing Tai’s debt headroom be enough to sustain Malaysia, China growth?

Debt headroom is currently sitting at $2b.

Overseas growth is on the cards for Wing Tai, as analysts believe the firm has significant debt headroom to propel growth in China, Malaysia, and even Australia.

According to a report by UOB Kay Hian, with some $2b in debt headroom (assuming comfortable net gearing level of 50%), Wing Tai is well poised to take full advantage of acquisition opportunities in China and Malaysia where current projects like the 301-unit Malaren Gardens (Shanghai, China) and 195-unit Le Nouvel KLCC (Malaysia) will be marketed.

Wing Tai has shared stoic optimism in China, especially in tier-1 and tier-2 cities. Management believes housing demand has outgrown supply in these spaces, thanks to burgeoning middle-class income and a relatively young population.

Meanwhile, Malaysia continues to be among the attractively priced property market in Southeast Asia, thank to the country's policies that are friendly to private home developers.