Dont get Tai, Says WingTai

[dtrax]

Source: http://www.channelnewsasia.com/stori...221332/1/.html


SINGAPORE: Property developer Wing Tai foresees a growing possibility of a correction in Singapore's property market.

This as the firm announced its fourth quarter (Q4) earnings on Tuesday.

Wing Tai's Q4 net profit slipped 16 per cent to S$140.5 million. This is despite its revenue jumping 88 per cent to S$202.2 million.

The company said its lower Q4 profit was due to a change in accounting standards, which do not recognise profits from uncompleted units.

Full-year profit declined 35 per cent year-on-year to S$242.2 million, while turnover dropped 17 per cent to S$624.9 million.

A total dividend of seven cents per share was also declared.

Despite the weaker performance, analysts Channel NewsAsia spoke to said the developer's earnings were above expectations.

The dividend was also a surprise as Maybank Kim Eng's analyst Wilson Liew was expecting dividends to be five cents per share.

At the results briefing, Wing Tai said it is targetting to launch its latest freehold residential development with 337 residential units with one commercial unit next year.

Formerly zoned for industrial use, the developer has successfully applied to change the use of its former headquarters to residential.

Located at Tampines Road near Kovan MRT station, Wing Tai said this latest project which sits on land acquired in the 1960s would help capture any potential uptick in the property market.

But the property developer believes the market is set for a correction ahead.

Chairman of Wing Tai Holdings, Cheng Wai Keung, said: "A number of you have been asking why have we not been tendering for URA projects and we have not been active in the market for quite some time.

"I would still maintain that the correction will be coming and the way I look at it, is that if there is a cycle, if you take away that 2008 temporary drop, you smooth out the curve, it is actually the eighth or ninth year of the rise in this cycle."

- CNA/ck

[radha08]

all TCSS one can make money they are bullish cannot make money say correction...anyway all those developers derserve to loose money..shame on them make SO much money from all those buyers...

[Laguna]

they are making up the excuses for the big drop in profit

[price]

all TCSS one can make money they are bullish cannot make money say correction...anyway all those developers derserve to loose money..shame on them make SO much money from all those buyers...

why shame? they are running a business not doing charity. will u run a business to make marginal profits only? if they make great profits it shows that their business is fantastic.

[eng81157]

they made the wrong bet on focusing on the mid to high-end segment of the property market. mass market cheong-ed, and still cheong-ing while luxury home prices have dived, and still diving.

[bargain hunter]

its not really a big drop in profits since the biz/profit recognition is cyclical. anyway, share price broke out on the charts and hit new 52 week highs on a down day yesterday and even dragged citydev up with it.

they are making up the excuses for the big drop in profit

[bargain hunter]

mistakes made in 07 boom cannot be so easily undone. however, they have amazingly been able to move some units at the completed helios and belle vue this year.

they made the wrong bet on focusing on the mid to high-end segment of the property market. mass market cheong-ed, and still cheong-ing while luxury home prices have dived, and still diving.

[eng81157]

mistakes made in 07 boom cannot be so easily undone. however, they have amazingly been able to move some units at the completed helios and belle vue this year.

moving some units won't help wing tai boost profits. since they successfully applied to convert their warehouse into residential use, stay tune for a rare OCR launch by them in the near future

[bargain hunter]

seems like it would be in Q1 2013.

moving some units won't help wing tai boost profits. since they successfully applied to convert their warehouse into residential use, stay tune for a rare OCR launch by them in the near future

[eng81157]

seems like it would be in Q1 2013.

just wondering how much they would be pricing that development? especially with such a sucky location......but hey, if punggol can hit 1000psf.......won't be surprised if it launches at 1100-1200psf

[cnud]

Likely in the range of $1300 psf... It's FH

[radha08]

why shame? they are running a business not doing charity. will u run a business to make marginal profits only? if they make great profits it shows that their business is fantastic.

yes you are right well done i say from business and shareholders point of view...

[eng81157]

Likely in the range of $1300 psf... It's FH

don't bet on it. look at CDL and FEO selling 99yr developments that are sitting on FH land parcels....

[cnud]

Thought they already announced the price range and tenure? Saw it somewhere..

[eng81157]

Thought they already announced the price range and tenure? Saw it somewhere..

huh? how can it be? they only announced the successful application for change of land use a few days ago

[cnud]

http://www.channelnewsasia.com/stori...221332/1/.html

[eng81157]

http://www.channelnewsasia.com/stori...221332/1/.html

no specifics about the development lah....

[sabian]

don't bet on it. look at CDL and FEO selling 99yr developments that are sitting on FH land parcels....

Which 99yr CDL development is sitting on FH land?

Only know of The Shore.

[eng81157]

Which 99yr CDL development is sitting on FH land?

Only know of The Shore.

The Shore's by FEO........
All the recent Pasir Ris launches by CDL - Palette, NV, Livia

[DC33_2008]

Unfortunately, FEO is not listed. They can any projects and mostly sold out.

don't bet on it. look at CDL and FEO selling 99yr developments that are sitting on FH land parcels....

[radha08]

The Shore's by FEO........
All the recent Pasir Ris launches by CDL - Palette, NV, Livia

is that true...land is freehold

[price]

KG opposite the road already selling at 1.4kpsf but mostly MMs. really depends what kind of units Wingtai building.

[hyenergix]

Why need to dig into its reserve land and sell next year when it believes there will be a price correction?

[bargain hunter]

what the boss means is he will try to sell that plot before the price correction comes. in the meantime, he will refrain from bidding for more GLS so that he won't get stuck.

Why need to dig into its reserve land and sell next year when it believes there will be a price correction?

[eng81157]

if the correction doesn't come before his landbank runs out, he's screwed big time.....

[hyenergix]

if the correction doesn't come before his landbank runs out, he's screwed big time.....

It was purchased decades ago at very low price, so there is no hurry to sell at this risky time. There must be something else.

[eng81157]

It was purchased decades ago at very low price, so there is no hurry to sell at this risky time. There must be something else.

wasn't referring to this piece of land, but wing tai's landbank in general. if i'm not wrong, they don't have too much left in the purses

[bargain hunter]

on the stucked CCR plots. on the other hand, their balance sheet is at their strongest in years becoz of the low landbank.

wasn't referring to this piece of land, but wing tai's landbank in general. if i'm not wrong, they don't have too much left in the purses

[eng81157]

on the stucked CCR plots. on the other hand, their balance sheet is at their strongest in years becoz of the low landbank.

balance sheet strong not much of a use, unless he starts snapping land up. no improvement in topline, still need to burn cash to feed bottomline = head kenna chopped.

[carbuncle]

KG opposite the road already selling at 1.4kpsf but mostly MMs. really depends what kind of units Wingtai building.

Reports say it will be a mixture including 1 bedders.