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Wing Tai Q3 net profit slumps 85% to S$10.1m
MAINBOARD-LISTED property and retail player Wing Tai Holdings saw earnings plunge in the third quarter on a sharp drop in associates' contributions.
Net profit fell by 85 per cent year-on-year, dropping from S$69 million to S$10.1 million for the three months to March 31, in results released on Friday. Revenue was down by 9 per cent to S$65.3 million.
The decline in earnings tracked a similar drop in Wing Tai's share of profits from associates and joint ventures. The company pointed in its financial statements to the lack of a one-off gain from the sale of a subsidiary, as well as lower contribution from Hong Kong's Wing Tai Properties.
"The share of profits of Wing Tai Properties in the corresponding period included a one-off gain on disposal of its interest in Winner Godown Building," the group explained, referring to an industrial property in the Tsuen Wan district of the Chinese territory.
Earnings per share came in at 1.13 Singapore cents, against 8.72 cents the year before. Net asset value was S$4.22 a share, down from S$4.31 as at June 30, 2018.
Meanwhile, net profit for the nine months was S$28.4 million - less than a third of the previous year's S$90.1 million - despite a 2 per cent uptick in revenue to S$259.2 million, which the group attributed to higher property sales in Malaysia.
Wing Tai's residential projects in Singapore include Le Nouvel Ardmore, The Crest and The Garden Residences, with Winsland Serviced Suites by Lanson Place in its hospitality arm.
It also counts G2000, BCBGMAXAZRIA, Topshop, Uniqlo, Cath Kidston, Dorothy Perkins and Fox Kids and Baby among the fashion brands that its retail segment distributes in the region.
Wing Tai noted in its outlook statement that it won a 99-year leasehold parcel in Middle Road in April 2019, which it plans to turn into private homes, with commercial space on the first floor. "The group will continue to look for investment opportunities in Singapore and overseas markets," it added.
No dividend was recommended, unchanged from the same period previously.
Wing Tai closed down S$0.01 or 0.49 per cent at S$2.02 before the results were announced.