Wing Tai Holdings H1 net profit jumps 73.1% to S$56.8m

MAINBOARD-LISTED property and retail player Wing Tai Holdings' saw its net profit rise by 73.1 per cent to S$56.8 million for the half year ended Dec 31, 2020, thanks to higher contribution from its development properties.

Its bottom line jumped to S$56.8 million from S$32.8 million for the corresponding period a year ago, on the back of a 32.7 per cent increase in revenue.

Revenue rose to S$243.4 million, up from S$183.5 million a year earlier, mainly attributable to the additional units sold in Le Nouvel Ardmore and the progressive sales recognised from The M @ Middle Road. Both are condominium projects in Singapore. It did not elaborate on the total or additional units moved.

Consequently, its earnings per share was 6.54 Singapore cents as at Dec 31, compared to 3.43 cents for the year ago period.

It did not declare a dividend for the first half year.

Cost of sales was 60.0 per cent higher, rising to S$143.5 million from S$89.7 million a year earlier, resulting in a 6.5 per cent increase in gross profit to S$99.9 million.

Wing Tai's other gains increased by 268.5 per cent to S$12.8 million, from S$3.5 million a year before, while its share of profits of associated and joint-venture companies increased by 7.7 per cent to S$38.5 million for the six months ended Dec 31.

Wing Tai recorded a 64.4 per cent decrease in the group's current trade and other receivables from S$111.6 million half a year ago to S$39.7 million in the first half year ended Dec 31, largely due to the repayment of loan by a joint-venture company.

Net asset value per share as at Dec 31 dropped to S$4.15, from S$4.18 as at June 30. The group was in a net cash position as at Dec 31.

Wing Tai said in a statement: "While the buying sentiments for the residential property is likely to remain stable in the current year, the group will continue to exercise prudence in liquidity and capital management to ride through the uncertainties in the market."

Its shares ended up two Singapore cents or 1.06 per cent at S$1.90 on Wednesday.