Wing Tai records lower profit for 4Q

KUALA LUMPUR (Aug 13): Wing Tai Malaysia Bhd (Wing Tai) recorded lower operating profit for its property development division at RM23.1 million for the fourth quarter ended June 30, 2015 (4QFY15) against RM55.2 million a year ago.

Revenue for the division also declined 47.5% to RM115.6 million in 4QFY15 from RM220.5 million in 4QFY14, according to a report carried by digitaledge Daily today.

In a filing to Bursa Malaysia yesterday, the group said lower revenue from the property development division was mainly attributable to sale of Plaza DNP in the previous year and lower revenue recognition for Verticas Residensi project in the current year.

For the full year, the group’s profit fell to RM17.3 million in 4QFY15 from RM29.7 million in the same period last year while revenue halved to RM66.5 million from RM146.6 million.

The lower revenue and profit was contributed by weaker profit from its retail division, which slumped to RM21.4 million in 4QFY15 against RM24.7 million in 4QFY14.

Revenue for its retail division also fell to RM170.5 million against RM185.3 million last year.

The group attributed the weaker profit for its retail division to weaker consumer spending and pressure from higher import cost due to weak ringgit.

Looking forward, the group believes that there is still growing demand for property development in Malaysia despite weak market sentiment.

However, the group expects 2015 to be a challenging year hence it will continue to streamline its operations to enhance performance.

The group still expects to remain profitable in FY16.