Wing Tai 4Q net profit falls 41.2% to RM29.41 million

by **Cals** Mon 18 Aug 2014, 22:27

Business & Markets 2014

Written by Gho Chee Yuan of theedgemalaysia.com

Monday, 18 August 2014 19:08

KUALA LUMPUR (Aug 18): Wing Tai Malaysia Bhd posted a 41.2 % drop in net profit to RM29.41million for the fourth quarter ended June 30, compared to RM49.98 million a year ago.

The property developer and garment manufacturer told Bursa Malaysia in a filling today that revenue fell 16.43% to RM14.66 million from RM17.54million.

The company has declared a dividend of 7 sen (including a special dividend of 2 sen) for the year ended June 30, as against a 10% payout for the previous financial year.

Wing Tai posted a net profit of RM70.39 million for the financial year compared with RM131.42 million previously.

Revenue dropped 28% to RM434.61 million from RM602.6 million, due to a lower turnover from the property development division.

“The revenue from property development division was RM220.5 million in the current year compared with RM395.2 million last year,” it said, attributing it a lower revenue recognition from the Verticas Residensi project.

“With the lower revenue, the operating profit of the property development division was stood at RM55.2 million in the current year compared with RM135.4 million in previous year,” it said.

The retail division, meanwhile, posted a revenue of RM185.3 million compared with RM179.1 million for the previous year.

Operating profit was lower at RM24.7 million against RM35.7 million previously due to a highly promotional trend and increase in operating costs.

“In the current year, we recorded share of profit from joint ventures of RM7.1 million compared with RM8.8 million in last year,” it said.

Looking forward, the group said it expects to remain profitable despite the prevailing market conditions and barring any unforeseen circumstances.