Published May 8, 2009

Wing Tai Q3 gain falls 23% to $21.4m

WING Tai Holdings has reported a 23 per cent drop in third-quarter group net profit to $21.4 million compared with a year ago. Revenue for the quarter ended March 31, 2009 slipped 19 per cent to $89.6 million.

For the nine months ended March 2009, Wing Tai's net earnings fell 44 per cent to $74.9 million and revenue dipped 2 per cent to $315.9 million.

Revenue in the latest nine months was recognised mainly from units sold in Helios Residences, The Riverine by the Park and Belle Vue Residences in Singapore.

Operating profit for the nine months slid 10 per cent to $91.7 million from a year earlier when it included a one-off gain of $26.6 million on the disposal of a financial asset.

The group's share of profits of associated and joint venture companies fell 71 per cent to $23.3 million due to a drop in sales of residential units at Vision Crest.

Gearing ratio stood at 0.48 times at March 31, 2009.

The group had cash and cash equivalents of almost $402 million at that date, up from $309.8 million at March 31, 2008.

Earnings per share fell to 2.74 cents for the latest Q3, from 3.27 cents a year earlier. Net asset value per share came to $2.12 at end-March 2009, higher than the end-June 2008 figure of $2.03.

Wing Tai said that property market conditions in 2009 are expected to remain challenging. 'In view of this, the group will continue to monitor the market closely and will exercise prudent management to ride through these difficult times,' it added.

There will be no dividend payout for the nine months ended March 31, 2009.

On the stock market yesterday, the counter closed 19 cents higher at $1.24.