Wing Tai Holdings H1 net profit up 18% to S$63.3 million

PROPERTY and retail company Wing Tai Holdings reported a net profit of S$63.3 million for the half year ended Dec 31, 2022, an increase of 18 per cent from the year-ago period.

This is despite a 15 per cent drop in revenue to S$261 million in the same period, the mainboard-listed company’s financial statements showed on Thursday (Feb 9).

Wing Tai said that this was due to lower contribution from its development properties, adding that revenue for the period was largely attributable to the last unit sold in Le Nouvel Ardmore and the progressive sales recognised from The M at Middle Road.

Meanwhile, net profit rose due to the higher share of profits from its joint venture companies as well as a write-back of deferred tax provision that is no longer required, the company said. This income tax credit amounted to S$13.5 million.

The share of profits of associated and joint venture companies was S$33.5 million in H2, compared with the S$21.5 million in the corresponding period a year ago, Wing Tai said. It added that the increase is primarily due to higher contributions from Uniqlo in Singapore and Malaysia.

Net asset value per share as at Dec 31 stood at S$4.26, while net gearing ratio was 0.08 times. This compares with a net asset value of S$4.32 as at Jun 30 and a net gearing ratio of 0.02 times.

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No dividend was declared for H1.

Wing Tai noted that private residential property prices had risen faster last year, compared with 2021, even though fewer units were sold.

It said that it expects interest rates and inflation to be two main factors affecting buying sentiment for private residential property in Singapore.

The company added that it will monitor the property market closely and, “at appropriate times”, launch a new residential project and release more residential units for sale.

Wing Tai shares closed at S$1.52 on Thursday, down 0.65 per cent or S$0.01 from the day before.