http://www.businesstimes.com.sg/arch...-dives-74-424m

Published May 09, 2012

Wing Tai's Q3 net profit dives 74% to $42.4m

Revenue falls 69% to $128m for the quarter; EPS down at 5.42 cents

By Nisha Ramchandani


PROPERTY and lifestyle company Wing Tai Holdings saw net profit for the third quarter ended March 31 slump 74 per cent to $42.35 million, while revenue slipped 69 per cent year on year to $128 million.

Earnings per share for the quarter worked out to 5.42 cents, compared with 20.97 cents (restated) for the corresponding quarter last year.

In the third quarter, gross profit was down 73 per cent to $66.46 million while operating profit was 85 per cent lower at $30.14 million.

However, share of profits of associated and joint-venture companies for the three months rose 80 per cent to $32.28 million.

For the nine months ended March 31, net profit dropped 50 per cent to $101.64 million on the back of lower revenue. Wing Tai registered a revenue of $422.7 million, 34 per cent lower year on year.

Revenue from development properties for the nine-month period largely came from the additional units sold in Helios Residences and Belle Vue Residences, as well as the progressive sales recognised from Foresque Residences and L'VIV in Singapore, it said.

Operating profit for the nine-month period dropped 70 per cent to $80.1 million on lower contributions from development properties, while share of profits of associated and joint-venture companies increased 69 per cent to $82.4 million due to the higher contributions from The Floridian and Ascentia Sky by Tanglin projects in Singapore and also from Wing Tai Properties in Hong Kong.

The group's net gearing ratio decreased from 0.36 times as at June 30, 2011, to 0.26 times as at March 31 this year.

"With the imposition of the additional buyer's stamp duty in December 2011, the luxury and high-end property market appears to be consolidating. The group will continue to keep a close watch on the property market," Wing Tai said.

It also highlighted that the Urban Redevelopment Authority's residential property price index fell marginally by 0.1 per cent in the first quarter of this year versus a 0.2 per cent increase in the previous quarter, representing the first quarterly fall in prices since the second quarter of 2009.

Shares in the company closed at $1.16 yesterday, unchanged.