Property group Wing Tai has reported earnings of $43.6 million for the FY2021 ended June, 2.7 times – or 173% higher – than earnings of $16.0 million in the corresponding period the year before.
Excluding the fair value changes on investment properties, the group’s underlying net profit stood at $116.8 million, 68% higher than the $69.6 million recorded in the FY2020.
Total revenue for the FY2021 stood 24% higher y-o-y to $461.4 million due to higher contribution from development properties. Revenue from development properties was largely attributable to the additional units sold in Le Nouvel Ardmore and the progressive sales recognised from The M at Middle Road.
Operating profit stood 55% higher y-o-y at $69.6 million mainly due to the higher contribution from the development properties.
Share of profits of associated and joint venture companies tripled to $36.3 million from $12.1 million in the previous year mainly due to higher contribution from The Garden Residences in Singapore on the additional units sold.
As at June 30, the group’s net asset value (NAV) per share was $4.14, slightly lower than the $4.18 as at June 30, 2020.
Cash and cash equivalents as at end-June stood at $773.0 million.
Looking ahead, the group says it expects the residential property market to remain stable in the current year, amid the rising costs faced in the construction industry and reduced productivity. The rising costs are due to manpower shortage while the reduction in productivity is due to the implementation of safe management measures at worksites.
Wing Tai has declared a first and final dividend of 3 cents per share for the FY2021, as well as a special dividend of 2 cents per share, bringing the total dividend for the FY2021 to 5 cents per share, higher than the 3 cents per share distributed in FY2020.
Shares in Wing Tai closed flat at $1.83 on Aug 26.