http://www.businesstimes.com.sg/arch...-887m-20130205

Published February 05, 2013

Wing Tai Q2 net profit jumps 159% to $88.7m

Results helped by revenue surge and higher contributions from associates and joint ventures

By ong chor hao


PROPERTY and retail group Wing Tai Holdings posted a net profit of $88.7 million for its second quarter ended Dec 31 last year, a surge of 159 per cent from $34.2 million a year ago, helped by factors such as stronger revenues.

Gross revenue for the quarter surged 73 per cent to $321.8 million albeit with lower margin as cost of sales rose 89 per cent to $197.1 million.

Operating profit jumped 137 per cent to $78.7 million with expenses fairly stable over the year and also with help from "other gains" of $5.06 million, against "other losses" of $2.3 million a year earlier.

Share of profits from associated and joint-venture firms also jumped 56 per cent to $39.7 million. Earnings per share for the three months were 11.32 cents, compared with 4.38 cents a year ago.

Wing Tai's net gearing ratio stood at 0.16 times as at end-December, compared with 0.15 times at end-September. It held cash and cash equivalents of $980 million at end-December, compared with $671 million a year earlier.

For the first half of the fiscal year, Wing Tai booked a net profit of $160.7 million, 171 per cent higher than the year before. It noted the 59 per cent rise in its share of profits of associated and joint-venture companies, primarily due to high contributions from Wing Tai Properties Limited in Hong Kong.

Gross revenue for the six months was $568.9 million, up 93 per cent. The recognition from progressive sales of the Foresque Residences at Bukit Timah and L'VIV at Newton, as well as revenue generated from additional units sold at the Helios Residences and Belle Vue Residences in the Orchard area were the main reasons for the higher figures.

Wing Tai noted the latest property cooling measures introduced by the government last month in its commentary accompanying its financial statements for the second quarter.

The company also said it will continue to explore investment opportunities in the markets it operates.

Wing Tai was awarded the tender for a 70-year leasehold plot of land around 580,000 square feet in Shanghai's Baoshan district last November, which it said will be developed as a residential project for sale. The company has properties in Singapore, Malaysia, Hong Kong and China.

"The group will continue to monitor the property market closely and will at appropriate times launch new residential projects for sale in the current year," it said.

Shares in Wing Tai closed 0.5 per cent lower yesterday at $1.905, before the results were announced. No dividend was declared for the quarter.