http://www.straitstimes.com/archive/...wn-35-20120822

Wing Tai's full-year profit down 35%

Its chairman believes property market could see a correction soon

Published on Aug 22, 2012


DEVELOPER Wing Tai Holdings chairman Cheng Wai Keung believes that the property market here could see a correction soon, and is in no rush to buy more land.

However, he said it seems more foreigners are returning to the luxury property market, which is in a slowdown.

Foreigners, who make up a substantial portion of luxury home buyers, have been hit in recent months by the 10 per cent additional buyer's stamp duty that was imposed on any home purchase by foreigners after December last year.

"After the initial negative reactions, they are now coming back... it takes time for them to rationalise it," he said.

Mr Cheng was speaking at a briefing for the property and lifestyle company's full-year results yesterday.

The group's net profit for the year ended June 30 was $242.2 million, a 35 per cent slide.

Group operating profit decreased by 52 per cent from $346.2 million to $165.5 million.

Revenue fell 17 per cent to $624.9 million.

Development properties remains Wing Tai's core business segment, registering a revenue of $363.9 million.

This was mainly attributable to the additional units sold in Helios Residences and Belle Vue Residences, as well as the progressive sales recognised from Foresque Residences and L'VIV.

The group saw full-year earnings per share of 31.02 cents, down from 47.66 cents a year earlier while net asset value was $2.69 as at June 30, up from $2.43 a year earlier.

A final dividend of three cents a share and a special dividend of four cents a share were recommended.

The developer will be launching a new residential project near Kovan MRT station early next year.

The freehold plot will have 337 residential units and one commercial unit.

Wing Tai's shares fell half a cent to close at $1.415 yesterday.

AMANDA TAN