WCT 2Q profit slips 4% as revenue falls 33%

PETALING JAYA (Aug 26): WCT Holdings Bhd’s profit attributable to ordinary shareholders fell 4% year on year to RM14.71 million for the second quarter ended June 30, 2026 (2QFY2026), as weaker property development and engineering and construction contributions weighed on revenue.

Quarterly revenue declined 33% to RM370.32 million from RM552.78 million a year earlier, while profit before tax fell 24.6% to RM21.71 million from RM28.80 million, according to the group’s unaudited filing with Bursa Malaysia on Wednesday (Aug 26).

Basic earnings per share eased to 0.94 sen from 0.98 sen. No dividend was declared for the quarter.

WCT attributed the lower revenue mainly to its property development and engineering and construction segments, whose contributions fell by RM115 million and RM55 million, respectively, from a year earlier.

The decline in property development revenue reflected lower property sales, including the absence of RM28 million in land sales recognised in the corresponding quarter last year. Engineering and construction revenue was lower as projects completed in the preceding year made no further contribution.

WCT said engineering and construction remained the group’s largest revenue contributor during the quarter at RM192 million, or 52% of consolidated revenue. Property development contributed RM128 million, or about 35%, while property investment and management and food and beverage contributed RM50 million, or about 13%.

Compared with the immediately preceding quarter, revenue fell from RM445.32 million. Profit attributable to ordinary shareholders, however, rose from RM4.58 million in 1QFY2026.

WCT attributed the sequential improvement mainly to a lower distribution to holders of its perpetual sukuk, which fell to RM1.56 million in 2QFY2026 from RM14.21 million in the preceding quarter.

For the first half ended June 30, 2026 (1HFY2026), profit attributable to ordinary shareholders declined 29.3% to RM19.29 million from RM27.28 million a year earlier, while revenue fell 20.4% to RM815.64 million from RM1.02 billion. Profit before tax decreased 19.2% to RM50.20 million from RM62.16 million.

Construction swings to operating loss

The engineering and construction segment recorded an operating loss of RM10.68 million for 1HFY2026, compared with an operating profit of RM9.20 million a year earlier, as revenue fell to RM438.57 million from RM472.54 million.

WCT said the lower revenue was mainly due to the absence of further contributions from projects completed in the preceding year.

Property development revenue fell to RM280.11 million from RM416.73 million, while operating profit declined to RM45.62 million from RM75.83 million. WCT said the comparative period had benefited from higher property sales and recognised land sales, with no corresponding land sales recorded in the current period.

Its property investment and management and food-and-beverage businesses recorded revenue of RM96.97 million and operating profit of RM18.61 million, compared with RM135.64 million and RM57.42 million, respectively, a year earlier.

WCT attributed the lower contribution to the different accounting treatment of contributions from Paradigm Mall Johor Bahru and Bukit Tinggi Shopping Centre following their injection into Paradigm REIT on June 10, 2025.

The group used RM62.41 million in operating activities during 1HFY2026, compared with RM277.92 million generated from operating activities a year earlier.

It also used RM194.96 million in investing activities, including RM200 million placed in investment securities, while financing activities generated RM276.01 million, supported by RM373.40 million in net borrowings drawdown.

Cash and cash equivalents stood at RM543.78 million at end-June.

Total borrowings rose to RM2.81 billion as at June 30 from RM2.43 billion at end-December 2025, comprising RM1.62 billion in long-term borrowings and RM1.18 billion in short-term borrowings.

WCT sees stable property demand amid construction challenge

On its outlook, WCT said the engineering and construction industry remained challenging, though it was hopeful for the rollout of sizeable projects in Malaysia in the near future.

The group said its engineering and construction division would continue to focus on project execution and cost recovery from completed projects, while additional resources had been allocated to secure new jobs locally and overseas.

Property development demand was expected to remain broadly stable, supported by Malaysia’s macroeconomic conditions and household consumption.

WCT said the performance of its property investment and management and food-and-beverage businesses was expected to be influenced by tourism conditions, regional travel demand and consumer spending, with the focus remaining on occupancy, visitation and operational performance.

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