Wing Tai's net profit for H1 FY22 down 5%

WING Tai Holdings' net profit for the six months ended Dec 31 declined 5 per cent year on year to S$53.8 million.

Revenue rose 26 per cent to S$306.6 million on the back of higher contributions from development properties. In a filing to the Singapore Exchange, Wing Tai said: "Revenue for the current period was largely attributable to the additional units sold in Le Nouvel Ardmore and the progressive sales recognised from The M at Middle Road in Singapore."

However, in the wake of the latest property cooling measures last December, Wing Tai warned that "buying sentiment for private residential property in Singapore may weaken in the current year".

Among the curbs rolled out were higher Additional Buyer's Stamp Duty (ABSD) rates for Singaporeans and Permanent Residents purchasing their second and subsequent properties. Foreign buyers were also hit: They now pay a stiffer ABSD of 30 per cent on any residential property purchase, up from 20 per cent.

During the period under review, Wing Tai recorded a 44 per cent drop in share of profits of associated and joint venture companies to about S$21.5 million, from S$38.5 million previously, owing to lower contributions from Wing Tai Properties in Hong Kong.

Earnings per share worked out to around 6.2 Singapore cents, slightly lower than 6.5 cents in the corresponding period a year ago.

The group recorded an operating profit of S$51 million, up slightly from S$50.5 million in H1 FY21, lifted by higher contribution from the development properties.

The group's net asset value per share as at Dec 31, 2021 was S$4.18, up slightly from S$4.14 as at June 30, 2021.

No dividend was recommended for the period under review, as was the case last year.

The counter closed at S$1.80 on Thursday, unchanged.