WCT 3Q net profit falls as contribution from other income shrinks

KUALA LUMPUR (Nov 22): WCT Holdings Bhd’s net profit declined 46.3% to RM13.33 million for the third quarter ended Sept 30, 2019 (3QFY19) from RM24.8 million or 1.79 sen per share last year due to lower other income as well as share of loss after tax of joint ventures.

Earnings per share shrank to 0.95 sen in 3QFY19 from 1.79 sen a year ago.

Other income for the quarter under review was 72.5% lower at RM15.68 million compared with RM57.03 million last year. Meanwhile, WCT posted a share of loss after tax of joint ventures of RM6.9 million versus a profit after tax of RM184,000.

This was in line with the 4.54% drop in revenue at RM368.27 million from RM385.78 million, according to a filing with the local stock exchange yesterday.

For the cumulative nine months ended Sept 30, 2019, its net profit fell 26.8% to RM76.35 million or 5.48 sen per share from RM104.32 million or 7.44 sen per share. Cumulative revenue dropped 16.45% to RM1.33 billion from RM1.36 billion.

Looking ahead, the board views that the group will be able to deliver satisfactory results for the current financial year, barring any unforeseen circumstances.

“The prospects of the group’s engineering and construction segment is expected to be supported by its strong outstanding orderbook, comprising a mix of civil and infrastructure works and building construction jobs.

As for the group’s property development segment, WCT said it is continuing its efforts to reduce unsold properties as well as divesting some of its idle undeveloped lands to improve its operating cash flow.

Shares of WCT closed unchanged at 90 sen yesterday, valuing the company at RM1.27 billion.

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