KUALA LUMPUR (Feb 19): Highway construction company WCE Holdings Bhd’s net profit grew 7.4% to RM10.34 million for the third financial quarter ended Dec 31, 2018 (3QFY19) from RM9.62 million a year ago, on lower taxation.

WCE reported lower taxation of RM322,000 compared with RM1.42 million in 3QFY18.

The effective tax rate for the current quarter is lower than the statutory tax rate due mainly to certain non-taxable income items, said WCE in a filing with Bursa Malaysia today.

The group's earnings per share came in higher at 1.01 sen for 3QFY19 compared with 0.94 sen for 3QFY18.

Quarterly revenue, however, fell 19.9% to RM123.3 million from RM153.88 million in 3QFY18.

For the cumulative nine months ended Dec 31, 2018 (9MFY19), WCE saw its net profit fall 21.7% to RM21.71 million from RM27.72 million a year ago, while revenue declined 9.2% to RM493.07 million versus RM543.07 million in 9MFY18.

On prospects, WCE expects the results for the current financial year to be satisfactory, barring any unforeseen circumstances.

WCE noted that the construction of the West Coast Expressway project is currently ongoing and some sections are expected to be completed during the financial year.

The expressway project, which involves the development of a 233km tolled highway from Banting, Selangor to Taiping, Perak (including 40km of highway to be constructed later), is a build-operate-transfer project with a concession period of up to a maximum of 60 years.

While the property market is expected to remain challenging despite improving consumer sentiments, WCE also said Bandar Rimbayu is expected to maintain its performance for the coming financial year on the back of the unbilled sales and satisfactory response from new launches.

WCE shares closed up 2.5 sen or 4.67% at 56 sen today, giving it a market capitalisation of RM561.53 million. Over the past year, the counter's share price has fallen 51% from RM1.14.