Wing Tai's FY18 earnings surge 11-fold to $218.8 mil on higher property-related gains

Wing Tai's FY18 earnings surge 11-fold to $218.8 mil on higher property-related gains

By: 
Michelle Zhu
28/08/18, 11:19 pm

SINGAPORE (Aug 28): Wing Tai Holdings announced earnings of $218.8 million for FY18, up nearly 11-fold from its full year earnings of $20.1 million a year ago, due to higher revenue as well as increased share of profits of associated and joint venture (JV) companies.

For the 4Q ended June, the group announced earnings of $129.8 million compared to $9.5 million a year ago.

Revenue for the full year grew 42% to $373.2 million due to higher contributions from development properties, driven mainly by the sale of additional units sold in Le Nouvel Ardmore in Singapore along with contributions from BM Mahkota in Penang, which obtained its Temporary Occupation Permit (TOP) in the financial year under review.

To date, revenue for the units sold in BM Mahkota has been fully recognised.

Share of profits of associated and JV companies grew to $211.6 million from $73.4 million in FY17, mainly attributable to the group’s share of gains recognised by Wing Tai Properties in Hong Kong from the disposal of Winner Godown Building and W Square.

Further, contributions were recognised from the sale of residential units in Malaren Gardens in Shanghai, China.

As at end-June, the group’s net asset value (NAV) per share was $4.31 compared to $4.07 in the same period a year ago.

A first and final dividend of 3 cents per share, as well as a special dividend of 5 cents per share, have been declared.

Going forward, Wing Tai expects Singapore’s latest round of property cooling measures to result in a subdued private residential property market. The group says it will continue to look for investment opportunities in Singapore and overseas markets.

Shares in Wing Tai closed 2 cents lower at $2 on Tuesday.

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