Results 1 to 2 of 2

Thread: Wing Tai to defer projects on profit slump

  1. #1
    mr funny is offline Any complaints please PM me
    Join Date
    May 2006
    Posts
    8,129

    Default Wing Tai to defer projects on profit slump

    http://www.businesstimes.com.sg/sub/...17839,00.html?

    Published February 7, 2009

    Wing Tai changes tack as earnings fall

    It will defer building housing projects where construction contracts haven't been awarded

    By KALPANA RASHIWALA


    PROPERTY group Wing Tai will defer construction of housing projects where construction contracts have not been awarded.


    EARNINGS CONTRIBUTORS
    Units sold in Wing Tai's Belle Vue Residences (above), Helios Residences and Riverine by the Park in Singapore, and Sering Ukay in Malaysia contributed to revenue and earnings for Q2 and H1 ended Dec 31


    It did not name the projects in its second-quarter results statement yesterday but BT understands that they include proposed developments on the Ardmore Point and Anderson 18 sites.

    The old Ardmore Point has been pulled down, leaving a vacant site, while the existing Anderson 18's units are largely vacant.

    Market watchers reckon that Wing Tai and its joint venture partner for Anderson 18, City Developments, will probably consider the option of renting out the existing units to tide over the current weak property market until they decide to redevelop the site.

    Wing Tai said: 'Property market conditions in 2009 are expected to remain challenging.'

    The group posted a 52 per cent year-on-year drop in net earnings for the second quarter ended Dec 31, 2008 to $20.9 million. For the six months ended Dec 31, 2008, net earnings fell 49 per cent to $53.5 million.

    The weaker first-half bottom line was due to a $50 million or 66 per cent fall in the group's share of profits of associated and joint venture companies as well as the absence of a $27.5 million one-off gain from disposal of an available-for-sale financial asset in Q2 of the preceding financial year.

    Excluding the $27.5 million one-off gain, the group's operating profit in the latest first-half period ended Dec 31, 2008 increased by 34 per cent from $42.6 million to $57.2 million; the boost was due chiefly to higher profit recognition from development properties.

    Units sold in Wing Tai's Helios Residences condo in Cairnhill, Riverine by the Park in Kallang and Belle Vue Residences at Oxley Walk in Singapore and Sering Ukay in Malaysia contributed to revenue and earnings for Q2 and H1 ended Dec 31, 2008.

    Wing Tai said that the decline in share of profits of associated and joint venture companies was due to lower contribution from VisionCrest on the sale of residential units.

    Q2 group revenue slid 17 per cent to $91.98 million, but the first-half revenue rose 7 per cent to $226.3 million.

    Wing Tai's net gearing ratio stood at 0.47 time as at Dec 31, 2008, up from 0.4 time as at June 30, 2008. The group's total borrowings and debt securities stood at $1.15 billion as at Dec 31, 2008, up from $1.09 billion as at June 30, 2008. No dividend has been declared.

    Net asset value per share excluding treasury rose one cent to $2.04 as at end-December 2008 from six months earlier.

    Yesterday, the counter ended three cents higher at 71 cents. The stock has lost about 67 per cent of its value from the $2.19 peak on Feb 27 last year.

  2. #2
    mr funny is offline Any complaints please PM me
    Join Date
    May 2006
    Posts
    8,129

    Default

    http://www.straitstimes.com/Money/St...ry_335209.html

    February 7, 2009 Saturday

    Wing Tai to defer projects on profit slump

    By Michelle Tay


    MAINBOARD-LISTED Wing Tai Holdings yesterday reported a 52 per cent year-on-year slide in second-quarter net profits to $20.9 million.

    The property group said that in the light of the challenging market conditions this year, it will 'defer the construction of those residential projects where the construction contracts have yet to be awarded'.

    The company blamed the profit slump in the period ended Dec 31 on a significant fall in contributions from associated and joint-venture companies, most notably the VisionCrest project.

    Revenue for the second quarter fell 17 per cent to $92 million but revenue for the half-year ended Dec 31 rose 7 per cent to $226.3 million - a result the group attributed to the 'higher contributions from the development properties division'.

    'Revenue for the current period came largely from the units sold in Helios Residences, The Riverine by the Park and Belle Vue Residences in Singapore, and Sering Ukay in Malaysia,' said a group statement.

    Wing Tai's net profits for the half- year still slipped, however, by 49 per cent to $53.5 million.

    Earnings per share for the quarter dropped to 6.8 cents from 14.39 cents previously. Net asset value per share as at Dec 31, 2008 rose by one cent to $2.04.

    Also as at Dec 31, the group's net gearing ratio - that is, debt to assets - rose to 0.47, from 0.4 as at June 30.

    The increase in borrowings, said the group, is attributable to the drawdown of additional loans for development projects and working capital.

    Home sales in Singapore fell sharply from 14,811 units in 2007 to 4,264 units last year, and Wing Tai said it 'will continue to monitor the market closely'.

    The firm has also said that it will persevere in the trying months ahead and continue to make the most of its extensive business networks and knowledge in its overseas markets.

    The company said it intends to maintain a long-term presence in Malaysia through its listed subsidiary DNP Holdings, as well as develop its China real estate joint venture to take part in opportunities in the growing China market.

    The group also has a retail arm, which distributes popular international brands here, such as Topshop and Miss Selfridge.

    In April, Wing Tai will open South-east Asia's first store for Japanese casual wear giant Uniqlo here, in suburban mall Tampines 1.

    It will open a second store in upcoming Orchard Road mall Ion Orchard in June.

Similar Threads

  1. Wing Tai hit by 19% slump in Q4 profit
    By reporter2 in forum HDB, EC, commercial and industrial property discussion
    Replies: 0
    -: 18-08-15, 18:29
  2. Wing Tai Q2 profit soars to $53.9m
    By mr funny in forum HDB, EC, commercial and industrial property discussion
    Replies: 0
    -: 02-02-11, 14:49
  3. Wing Tai Q1 net profit down 35%
    By mr funny in forum HDB, EC, commercial and industrial property discussion
    Replies: 0
    -: 27-10-10, 01:09
  4. Wing Tai's first-quarter profit up 42%
    By mr funny in forum HDB, EC, commercial and industrial property discussion
    Replies: 0
    -: 29-10-09, 17:41
  5. Wing Tai picks top architects for 2 projects
    By mr funny in forum Singapore Private Condominium Property Discussion and News
    Replies: 1
    -: 26-09-08, 12:48

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •