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Published May 4, 2011

Wing Tai Q3 profit soars 157% to $59.5m

For the nine months ended March 31, net profit rose 56% to $143.6m

By KALPANA RASHIWALA


WING Tai Holdings has posted a stronger bottomline for the third quarter and nine months ended March 31, 2011 thanks to progressive recognition of contributions from Helios Residences in the Cairnhill area and Floridian in Bukit Timah.


Foresque Residences: Wing Tai is now looking to preview the 99-year leasehold 496-unit condo at Petir Road as early as next week

Helios Residences received Temporary Occupation Permit in January this year; 71 of the project's 140 units have been sold. As for the Floridian, a joint venture with Orchard Parade Holdings, slightly over 80 per cent of the project's 336 units have been sold.

The group is now looking to preview Foresque Residences, a 99-year leasehold condo at Petir Road, as early as next week. Agents are gathering interest in the 24-storey project at prices exceeding $1,000 per square foot.

Next door, City Developments sold the Tree House condo like hot cakes in April last year at an average price of about $800 psf.

Foresque Residences will have 496 units comprising one- to four-bedroom units, cabana units and penthouses.

For Q3 ended March 31, Wing Tai posted net profit of about $59.5 million, up 157 per cent from $23.1 million for the corresponding period last year. Revenue rose 39 per cent to $205.2 million. Operating profit nearly doubled from $39.9 million to $76.8 million.

For the nine months ended March 31, net profit rose 56 per cent year on year to $143.6 million, despite an 11 per cent fall in revenue to $534 million. Revenue from development properties for the period came from progressive sales recognition from Helios Residences and additional units sold at Belle Vue Residences in Singapore. Belle Vue was completed last year; more than 70 per cent of the 176-unit condo is sold. Wing Tai's nine-month operating profit improved 17 per cent year on year to $193.9 million.

The share of profits of associated and joint venture companies increased by $33.9 million or 179 per cent to $52.9 million - thanks mainly to higher contributions from The Floridian as well as from the contributions of Wing Tai Properties Limited in Hong Kong.

The group trimmed its net gearing ratio to 0.39 time at March 31, 2011 - from 0.44 time as at June 30, 2010.

Net asset value per share stood at $2.25 at March 31, 2011, up from $2.18 at June 30, 2010. On the stockmarket yesterday, Wing Tai ended one cent lower at $1.57.

Wing Tai said that the latest slew of property cooling measures announced in January have had the effect of moderating residential property demand and rise in prices. 'The group will keep a close watch on the property market and will from time to time release more residential units for sale in the current year,' it added.

Besides Foresque Residences, the group is developing two Singapore residential projects in the posh Ardmore Park area. One is a 33-storey condo comprising 43 large units - four-bedders of 3,800-5,300 sq ft and a duplex penthouse of about 14,000 sq ft.

The other is a joint venture with City Developments that will have 156 units - comprising two, three and four-bedroom apartments as well as penthouses. Word on the street is that the latter project could be previewed in July.