SINGAPORE (Aug 24): Property group Wing Tai Holdings has announced earnings of $20.1 million for the FY17 ended June, nearly triple from its earnings of $7.1 million in FY16 on lower distribution expenses and increased share of profits of associated and joint venture companies.
A first and final dividend of three cents per share has been recommended, with the date of dividend payable to be announced later.
The stronger full year bottomline comes despite FY17 revenue falling more than half to $263.2 million from $544.5 million a year ago due to lower contributions from development properties.
Revenue came mainly from the progressive sales recognised from The Tembusu as well as the sale of additional units in Le Nouvel Ardmore in Singapore and Verticas Residences in Malaysia.
Distribution expenses fell 24% over the year to $66.9 million from $88.5 million a year ago, largely due to the lower rental and depreciation from retail outlets in Singapore.
This was partially offset by a 1% increase in administrative and other expenses to $87.8 million on higher accrued operating expenses.
Share of profits and impairment loss of associated and joint venture companies rose 24% to $73.4 million from $59.4 million in the previous year, largely due to the share of profits and fair value gains on investment properties of an associated company as well as higher contribution from Wing Tai Properties in Hong Kong.
This helped to mitigate the lower overall net profit before tax of $19.7 million in the current year, down 52% from $41.4 million a year ago as a result of the lower revenue.
At the end of FY17, Wing Tai’s net asset value (NAV) per share was $4.07, up 3 cents from $4.04 a year ago.
The group says it will continue to monitor the market closely, and will release more residential units for sale in the current year at the appropriate times.
Shares in Wing Tai closed 0.5% higher at $2.13 on Thursday.
