Wing Tai Holdings' Q3 earnings fall 93%

SINGAPORE - Net profit of Wing Tai Holdings was down 93 per cent to about $2.9 million for the third quarter, as it recorded lower contributions from development properties.

However, revenue for the three months to March 31 rose by 14 per cent to $174.2 million. But earnings were partly eroded by cost of sales, which rose by 47 per cent to $115.9 million.

For the nine months to March 31, net profit was down 69 per cent at $34.4 million, as revenue fell 26 per cent to $460.8 million.

Revenue for the nine-month period was mainly from progressive sales recognised from The Tembusu, and additional units sold in Foresque Residences and Helios Residences in Singapore, as well as The Lakeview in China.

Its share of profits from associated and joint venture companies also fell by 30 per cent to $23.1 million in the nine-month period, mainly due to the lower share of operating profit from Wing Tai Properties in Hong Kong. It was down 90 per cent for the three-month period to $1.9 million.

Earnings per share for the third quarter ended March 31 was 0.37 cent, down from 4.88 cents a year ago.

Net asset value was $1.62 at March 31, down from $1.67 at June 30, 2014.

"Buying sentiment for private residential property in Singapore is expected to remain subdued in the current year," it said.

In Malaysia, cautious buying sentiment in the property market will remain as well, due to credit tightening rules and rate increases by Bank Negara to curb rising household debts.

"In China, although residential sales are expected to improve with some relaxation of home purchase restrictions in certain cities, the government is expected to maintain its policy of ensuring stability of the real estate market," it added.