Wing Tai Q1 profit soars 187 per cent to $72.1m

Aided by a strong performance from its property arm, net profit at Wing Tai Holdings surged 187 per cent to $72.1 million in the fiscal first quarter, compared with $25.1 million a year ago.

For the three months ended Sept 30, total revenue rose 127 per cent from a year ago to $247.1 million.

Earnings per share increased to 9.21 cents from 3.22 cents.

The strong revenue growth came largely from the sale of additional units at Belle Vue Residences and Helios Residences, both in the Orchard area.

The company also recognised progressive sales from Foresque Residences at Bukit Timah and L'VIV at Newton, it said.

Operating profits grew to $65.1 million from $16.7 million a year ago.

Wing Tai's share of profits from associated and joint venture companies increased to $39.9 million in the current quarter from $24.7 million a year. This was primarily due to the higher contribution from Wing Tai Properties in Hong Kong.

But a jump in the cost of sales to $139.8 million from $50 million took a bite out on gross profit.

With the latest results, Wing Tai's net gearing ratio has been reduced to 0.15 times from 0.17 times in the last quarter.

The company's cash and cash equivalent at end-September was around $1 billion, compared with about $700 million a year ago.

Going forward, the company said it will develop a premium residential site at a 99-year leasehold site at Prince Charles Crescent in the Alexandra area. Wing Tai and its partners were awarded the tender last month.

It will also redevelop its freehold site at 105 and 107 Tampines Road for residential purposes.

"The group will continue to watch the property market closely and will release more residential units for sale in the current financial year," it said.

Wing Tai did not recommend a dividend for the quarter.

Its shares closed 0.9 per cent down on Tuesday at $1.70, before the results were announced.