Singapore Companies
Published February 13, 2007

Wing Tai posts 61% jump in Q2 profit on property development


WING Tai Holdings' second-quarter net profit surged 61 per cent year-on-year to $53.74 million, helped by higher contribution from its property development division.

The earnings came on the back of a 77 per cent rise in revenue to $272.8 million for the three months ended Dec 31, 2006. The results brought first-half net profit to $84.5 million, more than double the previous corresponding half's $41.57 million.

Six-month revenue came to $437.6 million, up 42 per cent. Cash and cash equivalents at end of period was $281.5 million, down from $327.2 million for the previous corresponding period.

In its results statement yesterday, Wing Tai said the surge in its first-half revenue was due substantially to the higher contribution from the development property division. Revenue from development properties came mainly from units in Draycott Eight and The Light @ Cairnhill as well as the percentage completion of Kovan Melody.

The group's operating profit rose from $39.7 million in the corresponding period to $108.6 million in the current period, or a 173 per cent increase.

The group is looking to launch more new residential projects in Singapore this year. This includes the former Phoenix Mansion site, which will be developed into two blocks of 20-storey freehold apartments.

Another residential project that will be launched is Riverine by the Park. This freehold development is located beside the Kallang Riverside Park and opposite the Kallang MRT Station.

Wing Tai said it will 'continue to position itself favourably to ride the upbeat momentum in the Singapore property market and will continue its programme to increase its overseas business activities'.

Last year, Wing Tai bought about $380 million worth of property investments here.

The acquisitions include the collective sale of Ardmore Point and Newton Meadows. Joint-venture projects include a 99-year leasehold residential development site near Tanah Merah MRT Station, and a condominium in the Bukit Timah area.