SINGAPORE (Feb 12): Wing Tai reported 2Q17 earnings rose sixfold to $12.6 million from $2.1 million a year ago. This brings 1H17 earnings to $20.87 million from just $3.2 million a year ago.
Revenue for the 2Q17 ended Dec closed 113% higher at $130.0 million. For 1H17 ended Dec, the group recorded total revenue of $197.1 million, a 50% increase from the $131.1 million revenue 1H16 ended Dec. This was largely due to the higher contributions from development properties.
Revenue from development properties was mainly attributable to the additional units sold in Le Nouvel Ardmore in Singapore, Le Nouvel KLCC in Kuala Lumpur as well as the contribution from BM Mahkota in Penang. BM Mahkota obtained its Temporary Occupation Permit (TOP) in November 2017 and the revenue for the units sold has been fully recognised in the current period.
In line with the higher revenue, the group recorded operating profit of $17.8 million in 1H17 as compared to operating loss of $0.9 million last year. As a result, 1H earnings increased to $20.8 million from $3.2 million.
As at Dec 31, 2017, the group’s net asset value per share as at Dec 31, 2017 was $4.01 as compared to $4.07.
In its outlook, Wing Tai says it will continue to look for investment opportunities in Singapore and overseas markets. It will also release more residential units for sale in the current year.
Shares in Wing Tai closed 1 cent lower at $2.13 on Monday.