Wing Tai reports 222% surge in FY2022 earnings to $140.2 mil from higher contributions from associated and JV companies

SINGAPORE (EDGEPROP) - Wing Tai Holdings has reported earnings of $140.2 million for the FY2022 ended June, 222% higher than earnings of $43.6 million in the FY2021. This was boosted by the group’s 2HFY2022 earnings of $86.4 million, which reversed from its $13.2 million loss in the 2HFY2021.

During the period, Wing Tai’s earnings were boosted by its higher share of profits of associate and joint venture (JV) companies.

For the FY2022, the group’s share of profits of associate and joint venture (JV) companies increased by 209% y-o-y to $112.2 million, which was primarily due to the higher contributions from Wing Tai Properties Limited in Hong Kong as well as Uniqlo in Singapore and Malaysia.

During the 2HFY2022, the group’s share of profits of associate and JV companies stood at $90.7 million, from its share of loss of $2.2 million in the same period the year before. Earnings per share stood at 16.62 cents on a fully diluted basis in FY2022.

Revenue for the full financial year FY2022 increased by 12% y-o-y to $514.6 million mainly due to the higher contributions from the group’s development properties, especially from the progressive sales recognised from The M at Middle Road and the additional units sold in Le Nouvel Ardmore in Singapore.

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In May 2022, Wing Tai entered into a contract for the collective purchase of Lakeside Apartments along Yuan Ching Road in Jurong for $273.9 million. The leasehold site sits on a land area of 12,465.4 sqm ((134,178 sq ft). The acquisition is subject to the approval of the Strata Title Board and the Land Dealings Approval Unit of Singapore Land Authority. Wing Tai plans to redevelop the site as a residential property development for sale.

In Australia, Wing Tai acquired the remaining 50% interest in the freehold office building at 464-466 St Kilda Road, Melbourne, Victoria, from its joint venture partner for A$49.4 million. With the completion of the acquisition, the group now owns 100% of the property.

Cost of sales increased by 26% y-o-y to $350.0 million, while gross profit fell by 10% y-o-y to $164.6 million. Other gains fell by 7% y-o-y to $11.0 million. Operating profit fell by 11% y-o-y to $62.3 million.

The group has declared a first and final cash dividend of 3 cents as well as a special dividend of 3 cents for FY2022. This is one cent higher from FY2021’s dividend, which included a first and final dividend of 3 cents and a special dividend of 2 cents.

Looking ahead, the group says it expects the property cooling measures from December 2021, the rising interest rate environment, higher inflation as well as the geopolitical tensions to affect buying sentiment for private properties in Singapore.

Shares in Wing Tai closed flat at $1.61 on Aug 25.