Wing Tai reports 222% in earnings to $140.2 mil in contributions associated with JV companies – Copen Grand EC at Tengah Garden Walk By CDL & MCL Land (Hot Launch 2022)

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Wing Tai Holdings has reported earnings of $140.2 million in FY2022 which ended June. This was which is 222% more than the results of $43.6 million for FY2021. This was helped by its 2HFY2022 profits totaling $86.4 millions, which was up from the $13.2 million loss for the 2HFY2021.

In the course of time, Wing Tai’s earnings increased due to its larger portion of profits from affiliate or joint venture (JV) companies.

For FY2022, the company’s share of profits from joint venture and associate (JV) businesses rose by 209% year-over-year to $112.2 million. This was mostly due to more substantial contribution by Wing Tai Properties Limited in Hong Kong as well as Uniqlo in Singapore and Malaysia.

In the 2HFY2022, the company’s share of profits from JV and associate companies stood in the range of $90.7 million, up from its loss share of $2.2 million during the same time frame prior to. Earnings per share was 16.62 cents on dilute basis for FY2022.

The revenue for the entire financial year FY2022 was up 12% year-on-year to $514.6 million, mainly because of the greater contribution from the development properties particularly from the sales that are progressive and recognized by the M in Middle Road and the additional units sold at Le Nouvel Ardmore in Singapore.

On May 20, 2022 Wing Tai entered into an agreement for the acquisition of Lakeside Apartments along Yuan Ching Road in Jurong for $273.9 million. The leasehold site is located on an surface that is 12,465.4 square meters ((134,178 sq feet). The purchase is subject to approval by the Strata Title Board and the Land Dealings Approval Unit of Singapore Land Authority. Wing Tai intends to develop the site to be a residential property development that is available for purchase.

To be precise, within Australia, Wing Tai acquired the remaining 50% part of the freehold office building located at 464-466 St Kilda Road, Melbourne, Victoria, from its joint venture partner for A$49.4 million. After the successful closing of the purchase, the company now owns 100% of the property.

The cost of sales increased by 26% over the course of the year up to $350.0 million, and gross profit decreased by 10% year-over-year up to $164.6 million. Other gains decreased by 7% in a year in the range of $11.0 million. Operating profit dropped by 11% over the course of the year up to $62.3 million.

The company has announced a first and final dividend of 3 cents, as well in an additional payout of three cents in FY2022. It is one cent more than the FY2021 dividend, which included a first and last dividend of three cents as well as an extra payment of 2 cents.

In the future, the company predicts that the property cooling measures to begin in Dec. 2021. growing interest rates, the higher inflation, and the geopolitical instability to impact the buying behavior of residential properties located in Singapore.