KUALA LUMPUR (May 15): Property developer cum garment retailer Wing Tai Malaysia Bhd saw its net profit for the nine months ended March 31 jump 48.5% from a year ago to RM69.96 million, as higher property and retail sales helped revenue grow 19.5% to RM323.5 million over the same period.
Higher revenue from the property development division was partly attributable to higher revenue from the Verticas Residensi project, Wing Tai said in notes accompanying its accounts.
Revenue for the property division rose to RM173.3 million from RM134.3 million while operating profit grew to RM57.2 million from RM33.9 million. Meanwhile, operating profit at its retail division grew to RM32.8 million from RM27.8 million even as sales grew to RM130.5 million from RM113.8 million, it added.
For 3Q ended March 31, group net profit was up 31.26% to RM24.28 million from a year ago on the back of a 21.36% growth in top line to RM116.74 million.
Compared with the immediate preceding quarter, however, lower sales contribution from its retail division caused a 6% fall in revenue from RM124.8 million in the quarter ended Dec 31, 2011. "The higher revenue in the preceding quarter was mainly due to higher sales during the festive season and year-end school holidays," it said.
Nonetheless, higher contribution from its Impiana Commercial Hub project helped boost operating profit for the property development division.
The group expects the property development and retail divisions to remain profitable for the current financial year, although there is still uncertainty in the global economy.
Wing Tai's share price fell five sen or 2.94% to RM1.65 on Monday, being 0.6 times its net asset per share of RM2.74 as at end-March. The company has 4% of its outstanding issued shares in treasury and did not declare any dividend with its interim earnings announced on Monday.