WCT Group Posts Solid Performance in Q2FY23
29 August 2023

PETALING JAYA, Tuesday, August 29 2023 — WCT Holdings Berhad (“the Group”), an investment holding company with businesses in engineering and construction, property development, and investment in and management of retail malls and hotels, reported revenue of RM424 million for its second quarter ended on 30 June 2023 (“Q2FY23”) as compared to RM561 million in the preceding year’s corresponding quarter which ended on 30 June 2022 (“Q2FY22”). The Group registered a profit attributable to equity holders of RM13 million as compared to RM58 million recorded in Q2FY22.

Cumulatively, the Group recorded a revenue of RM829 million for the first six months ended 30 June 2023 (“2QFY23”) as compared to the RM1.2 billion registered in the preceding year's corresponding period (“2QFY22”). The Group’s profit attributable to equity holders was recorded at RM5.3 million as compared to RM89 million in 2QFY22.

The Group’s Engineering and Construction Division contributes 70% of the Group’s consolidated revenue and generated a revenue of RM579 million (2QFY22: RM750 million). The Division recorded an operating profit of RM23 million as compared to RM30 million in 2QFY22. The lower revenue and operating profit in the current period were mainly due to the slower pace of construction progress, particularly for projects that are in their final stages.

Meanwhile, the Group’s Property Development Division recorded revenue and operating profit of RM146 million (2QFY22:RM324 million) and RM16 million (2QFY22:RM44 million) respectively. The higher revenue and operating profits in 2QFY22 were attributed to the sale of vacant lands with sale proceeds of RM214 million and a profit of RM56 million. Excluding the land sale, the division achieved a higher revenue and operating profit in the current period.

The Property Investment and Management Division reported higher revenue of RM105 million (2QFY22:RM92 million) and higher operating profit of RM51 million (2QFY22:RM49 million). The growth in revenue and operating profit were attributed to both higher occupancy rate and better rental rates for the division’s malls and hotels.

The Group reported basic earnings per share of 0.38 sen as compared to basic earnings per share of 6.28 sen recorded in 2QFY22.

Dato’ Lee Tuck Fook, Group Managing Director, WCT Holdings Berhad said, “In spite of the challenging market conditions, WCT Group’s performance remains commendable with operating profits contributed from all three core businesses.

The Group’s retail malls have been versatile in its mall initiatives to enhance shoppers’ experience. For instance, the Voucher Bonanza Sale (VBS) promotions that were launched across Paradigm Mall Petaling Jaya, Paradigm Mall Johor Bahru, gateway@klia2 and SkyPark Terminal provided shoppers with substantial savings while sustaining mall tenants. Following this groundbreaking and long-term initiative, WCT Malls received the Marketing Initiative of the Year award at the Retail Asia Awards 2023 held in June 2023. Additionally, the malls also introduced the “Eat More, Save More” campaign that lasts until 31 October 2023, allowing shoppers to indulge in delectable cuisine while enjoying amazing savings.

Meanwhile, the Property Development Division continues to drive sales performance via various marketing strategies including participation in roadshows, exhibitions, intensive online marketing strategies, attractive and easy entry sales packages as well as convenient financing schemes. Having fulfilled the assessment criteria for green buildings by GreenRE, a Malaysian green building certification body, The Maple Residences in WCity OUG, Kuala Lumpur is awarded Bronze in the Residential Category, making it the first green-certified project under the division.

“Looking ahead, the Group’s Engineering and Construction Division will catch up on its key project milestones while pursuing infrastructure and buildings-related tenders locally and regionally. The Property Development and Property Investment and Management Divisions are optimistic that the continuous growth of the Malaysian economy coupled with improving consumer and business sentiments will increase the demand for our property development offers and launches. The Group’s retail malls and hotels will continue to be innovative and exclusive in their offerings to the patrons,” concluded Dato’.