Wing Tai Holdings W05 has reported earnings of $20.5 million for its 1HFY2024 ended Dec 31, 2023, down 68% compared to its earnings of $63.3 million in the same period last year.
For the half-year period, earnings per share (EPS) also decreased to 2.24 cents, down from 7.87 cents per share in 1HFY2023.
Wing Tai recorded a 1HFY2024 revenue of $97.7 million, 63% lower y-o-y due to a lower contribution from development properties. Revenue for the period was largely attributable to the progressive sales recognised from The M at Middle Road in Singapore and the sale of residential units in Jesselton Hills in Malaysia.
The group recorded an operating profit of $9.2 million in 1HFY2024 as compared to $29.1 million in the same period last year. The decrease was also mainly due to lower contributions from development properties.
Share of profits from associated and joint venture companies was $32.2 million in 1HFY2024, slightly lower than the $33.4 million recorded in 1HFY2023. The decrease was primarily due to lower contribution from Wing Tai Properties Limited in Hong Kong and partially offset by higher contribution from Uniqlo.
Wing Tai’s cost of sales also decreased 76% y-o-y to $43.9 million for 1HFY2024, while gross profit came in 34% lower y-o-y at $53.8 million.
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The group’s cash and cash equivalents stood at $683.8 million as at Dec 31, 2023.
In its outlook, the group says it expects heightened geopolitical uncertainties to weigh on the global economy and Singapore's economic growth. “Buying sentiment for private residential property in Singapore is expected to remain cautious until greater confidence returns.”
Wing Tai says it will release more residential units for sales at “appropriate times”.
Shares in Wing Tai closed 1 cent or 0.82% down at $1.21 on Feb 6.
