Yong Tai back in the black thanks to property venture

KUALA LUMPUR (Aug 27): Yong Tai Bhd returned to the black thanks to its property venture with a net profit of RM6.68 million for the fourth quarter ended June 30, 2015 (4QFY15) compared with a net loss of RM5.63 million a year ago.

Revenue also doubled to RM21.85 million from RM10.83 million in 4QFY14. Earnings per share for the 4QFY15 stood at 16.10 sen against loss per share of 13.68 sen in 4QFY14.

The profits were mainly from contribution from the joint venture project collaboration in the property business and gain from the disposal of two loss making wholly-owned subsidiaries, Golden Vertex Sdn Bhd and The Image Outlet Sdn Bhd, which amounted to RM7.05 million, Yong Tai said in a statement today.

For the financial year ended June 30, 2015, the garment manufacturer turned property developer posted a net profit of RM7.75 million, or 18.68 sen per share, from a net loss of RM7.27 million, or 17.66 sen loss per share, last year.

Meanwhile, its cumulative revenue doubled to RM97.02 million from RM48.46 million in FY14, mainly attributable to revenue recognition from ongoing projects in the property development business segment.

Separately, its retail business and dyeing segment registered 14.2% lower revenue of RM41.56 million for the financial year compared with RM48.46 million last year, mainly due to weaker consumer spending that has affected demand.

Executive director Ng Jet Heong said, overall, the group’s performance was boosted by the revenue contribution from the property development segment of RM55.45 million, following the completion of its maiden property development project in Melaka, namely 99 Residences. 99 Residences is now known as The Pines.

“I am pleased with the company’s FY15 results. Our first property development project collaboration with Malacca-based PTS Properties Sdn Bhd (PTS Properties), The Pines, gave us a good kickstart as it’s a huge turnaround for us,” he added.

On the company’s prospects for FY16, Ng expects the performance in FY16 to remain favourable, anchored by the growth and contribution from its property development business segment.

In addition, the joint venture project collaboration with PTS Properties to undertake the development of four-star hotel The Apple is expected to provide Yong Tai with an opportunity to participate in the development of a prime development land into a lucrative property development project.

Moving forward, Yong Tai will continue to grow its property development business segment by continuously seeking for opportunities to acquire more lands with good prospects for its future property development activities.

Shares in Yong Tai rose one sen or 2.22% to 46 sen, for a market capitalisation of RM72.16 million.