Wing Tai Holdings posts S$129.8m earnings for Q4

Singapore

PROPERTY and retail group Wing Tai Holdings has delivered a net profit of S$129.8 million for the fourth quarter ended Jun 30, 2018, up from S$9.5 million a year ago.

Results were driven by a 258 per cent gain in share of profits of associates and joint venture (JV) companies. Wing Tai also recorded a S$21.7 million in other gains, back from the red of S$5.6 million the previous year. The increase was mainly due to the fair value gains on investment properties and gain on disposal of subsidiary companies.

Revenue in Q4 rose 80 per cent to S$105.8 million, propelled by higher contributions from development properties.

For FY18, bottomline soared from S$20.1 million to S$218.8 million, boosted by profits from associated and JV companies - which was up 188 per cent - and other gains.

The increase in profits from associates and JVs was due to the group's share of gains recognised by Wing Tai Properties Ltd in Hong Kong from the disposal of Winner Godown Building, an industrial building in Tsuen Wan, as well as W Square, a Grade A office building in Wan Chai. There was also contribution from Malaren Gardens in Shanghai from the units sold to date and handed over to buyers.

Turnover for FY18 was S$373.2 million, a 42 per cent rise from FY17. It was largely due to higher revenue from additional units sold in Le Nouvel Ardmore in Singapore and BM Mahkota in Penang. Seven units of Le Nouvel Ardmore were sold during the financial year, bringing the total units sold to date to 15 units out of 43. (see amendment note)

Wing Tai said in a filing on SGX that with the new property cooling measures announced last month, it expects the private residential property property market in Singapore to be subdued.

Wing Tai chairman Cheng Wai Keung said during a press briefing that he hopes the government will be clearer on how much of the temporary cooling measures will be long-term.

"For the benefit of the industry, so that they can have more certainty in planning, I hope that the government can have a long term policy - for example, on foreign purchase. (And for) Singaporeans who want to buy, is property asset an investment class for (them)?" said Mr Cheng, in reference to the higher Additional Buyer's Stamp Duty (ABSD) buyers must face.

"What is the government's policy on keeping the investments in property?" said Mr Cheng.

Wing Tai will look for more opportunities to invest in countries such as Japan and will focus on "yield-based investment". Earnings per share was 16.57 Singapore cents, up from 1.22 Singapore cents a year ago. The group has declared a first and final dividend of three Singapore cents and a special dividend of five Singapore cents.

Wing Tai finished at S$2.00 on Tuesday before results were out, down from S$2.02.

Amendment note: An earlier version of this article incorrectly stated that 14 units of Le Nouvel Ardmore have been sold to date. It is in fact 15 units. The article above has been revised to reflect this.