WCT Holdings 2Q net profit doubles on higher construction billings

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KUALA LUMPUR (Aug 27): WCT Holdings Bhd's net profit doubled to RM43.78 million in the second quarter ended June 30, 2018 (2QFY18), from RM21.25 million a year ago, mainly due to higher construction billings from local infrastructure projects and lower unrealised foreign exchange loss.

Earnings per share improved to 3.11 sen, from 1.53 sen in 2QFY17.

Its quarterly revenue rose 75% year-on-year to RM669.90 million from RM382.81 million, WCT said in a filing with Bursa Malaysia today.

For the cumulative six months (1HFY18), WCT’s net profit was up 51.9% y-o-y to RM82.16 million from RM54.09 million, while revenue was 41.4% higher at RM1.21 billion versus RM855.70 million in 1HFY17.

“Our efforts in expanding our construction portfolio, specifically within the domestic infrastructure sector, has continued to bear fruit, with our outstanding order book now standing at over RM5 billion, comprising mainly higher margin civil and infrastructural works, WCT group managing director Datuk Lee Tuck Fook said in a separate statement today.

Moving forward, the group expects its engineering and construction division to remain as the primary contributor of its group’s earnings and the group also expects positive contribution from its property development division, as well as property investment and management division.

“The group intends to replenish its order book by focusing on building construction jobs to rebalance its order book to reduce its over reliance on infrastructure related jobs," he added. 

For the property development division, WCT said it will continue to intensify its marketing and sales initiatives, in the effort to improve sales of existing unsold properties.

WCT is also looking to launch Sapphire Residences at Paradigm Petaling Jaya in the fourth quarter of this year. The single tower houses 229 contemporary residential units, featuring four layouts, ranging from 1,001 sq ft to 1,722 sq ft. 

For its property investment and management division, Lee said WCT will be improving its offerings and services, in order to remain competitive. 

“We have recently undertaken our first major asset enhancement initiative (AEI) for Paradigm Mall in Petaling Jaya, after six years of trading. Upon completion, the AEI is expected to add a new vibrancy to Paradigm PJ and provide enhanced shopping experience to our loyal customers and shoppers,” he added. 

WCT shares closed down 1.5 sen or 1.6% at 92 sen today, with 5.24 million shares done, giving it a market capitalisation of RM1.3 billion.