http://www.businesstimes.com.sg/comp...-slowing-sales

Wing Tai's revenue hurt by slowing sales

Q3 revenue falls 35% to S$113m, net profit drops 27% to S$2.1m

By Michelle Quah

[email protected]

@MichelleQuahBT

May 7, 2016


REGIONAL property developer Wing Tai Holdings saw its takings hit by slowing sales of its property units.

Its revenue for the third quarter was down 35 per cent to S$113.0 million, from S$174.1 million a year ago.

Revenue for the nine-month period ended March 31, 2016, was down 12 per cent to S$403.8 million, from S$460.8 million the year before.

Wing Tai said the revenue for the period was mainly attributable to the progressive sales recognised from its development, The Tembusu, and the additional units sold in another development, Le Nouvel Ardmore - both in Singapore - as well as its development in China, The Lakeview.

The group's net profit attributable to shareholders fell 27 per cent to S$2.1 million for the March quarter, from S$2.9 million the year before.

For the nine-month period ended March 31, 2016, net profit attributable to shareholders was down 85 per cent to S$5.2 million, from S$34.4 million the year before.

Its earnings per share (EPS) fell to 0.27 cent for the March quarter, from 0.37 cent. For the nine months, its EPS was 0.67 cent, from 4.36 cents the year before.

Wing Tai saw a substantial jump in the share of profits it received from its associated and joint venture companies for the March quarter - this increased 625 per cent year-on-year to S$13.7 million, from S$1.9 million.

For the nine-month period, the group's share of profits from associated and joint venture companies increased by 28 per cent to S$29.5 million, from S$23.1 million.

It said this was due mainly to the higher share of operating profit from Wing Tai Properties in Hong Kong.

Looking ahead, Wing Tai said it expects buying sentiment for private residential property in Singapore to stay subdued. It noted that the URA's residential property price index decreased by 0.7 per cent in the first quarter of this year, compared to the 0.5 per cent decline in the previous quarter. It also noted that the total number of new residential units sold islandwide in the first quarter fell to 1,419 units, compared with 1,603 new units sold in the previous quarter.

It added that it expects the cautious buying sentiment in the Malaysian property market to remain.

But it noted that residential property sales in China have improved in certain cities, underpinned by some relaxation of home purchase restrictions.

"The group will monitor the market closely and will at appropriate times release more residential units for sale in the current year," it said in its results announcement.

Wing Tai shares closed two cents down on Friday to S$1.80.