Wing Tai Holdings posts 61% jump in Q2 net profit of S$26m

MAINBOARD-LISTED Wing Tai Holdings, which owns Winsland House in Singapore and manages retail brands such as Dorothy Perkins and Uniqlo, saw its earnings jump in the second quarter, as the group notched a higher gross profit, other gains, and contributions from associates and joint ventures.

Net profit rose to S$26 million for the three months to Dec 31, 2019, up 61 per cent from S$16.1 million the year before, even as revenue slipped 10.2 per cent to S$104.2 million.

Operating profit was up from contributions from luxury freehold condominium Le Nouvel Ardmore in Ardmore Road, where the group moved more units in the six months, according to unaudited financial statements released on Wednesday.

Wing Tai also clocked a higher share of profits from associates and joint ventures, which it said came on higher contributions from The Crest in Prince Charles Crescent, Singapore and more units sold in Malaren Gardens in Shanghai. 

Earnings per share grew to 2.96 Singapore cents for the quarter from 1.9 cents before, while net asset value stood at S$4.17 a share, against S$4.19 as at June 30, 2019.

For the half-year, net profit swelled by 78.9 per cent to S$32.8 million, while revenue fell 5.4 per cent to S$183.5 million.

No dividend was recommended for the half-year, unchanged from the year before.

In its outlook statement, Wing Tai noted a slower pace of growth for Singapore private home prices in 2019, compared with the year before, adding that it "will monitor the property markets closely" amid the outbreak of the Covid-19 disease that has infected 50 people here so far.

Wing Tai's properties for sale in Singapore are Le Nouvel Ardmore, The Crest and The Garden Residences, with the mixed-use The M development in Middle Road in the pipeline.

Wing Tai shares closed flat at S$1.97 on Wednesday before the results were announced.