Tuesday, February 1, 2011

Wing Tai Q2 profit soars to $53.9m

WING Tai Holdings has posted a 142 per cent jump in net earnings for the second quarter ended Dec 31, 2010 to $53.9 million, from $22.3 million a year earlier.

The property and retail group's Q2 revenue rose 13 per cent year on year to $197.8 million.

For the first half, Wing Tai achieved a 23 per cent year-on-year increase in net profit to $84.1 million, despite a 27 per cent drop in revenue to $328.8 million. The first-half bottom line was buoyed by a 145 per cent jump in share of profits of associated and joint venture companies to $32.5 million.

This was due mainly to higher contributions from The Floridian condominium development in Singapore and from the contribution of the group's Hong Kong unit Wing Tai Properties Limited, which was formerly known as USI Holdings.

Revenue from development properties for the first half was mainly attributable to progressive sales recognised from Helios Residences and the additional units sold in Belle Vue Residences in Singapore.

The group's cash and cash equivalents rose slightly from $594.1 million as at June 30, 2010 to $600.3 million as at Dec 31, 2010. Over the same period, net gearing ratio was pared from 0.44 to 0.31.

No interim dividend has been declared.

Earnings per share for the first half ended Dec 31, 2010 came to 10.8 cents, up from 8.83 cents in the same year-ago period. Net asset value per share stood at $2.18 as at Dec 31, 2010, unchanged from June 30, 2010.

On the stock market yesterday, the counter ended two cents lower at $1.64.

In October last year, Wing Tai beat eight other bidders at a state tender to clinch a 99-year leasehold private housing site at Petir Road, next to the sold-out Tree House condo project.

Wing Tai's winning bid of $177.4 million worked out to $345 per square foot per plot ratio (psf ppr). This was just 2 per cent above the second-highest offer of $173.8 million or $338 psf ppr from Sim Lian Land.

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