WCT Group to Focus on Sustainable Financial Performance
23 November 2023
PETALING JAYA, Thursday, November 23, 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 higher revenue of RM497 million for its third quarter, which ended on 30 September 2023 (“Q3FY23”) as compared to RM470 million in the preceding year’s corresponding quarter, 30 September 2022 (“Q3FY22”). Its loss for the period was RM14 million as compared to RM12 million profit attributable to equity holders registered in Q3FY22.
Cumulatively for the nine months ended 30 September 2023 (“3QFY23”), the Group recorded revenue and loss attributable to equity holders of RM1.3 billion and RM8 million respectively as compared to the revenue and profit attributable to equity holders of RM1.6 billion and RM102 million registered in the preceding year’s corresponding period (“3QFY22”).
The Group’s Engineering and Construction Division registered an operating profit of RM18 million (3QFY22:RM76 million) on the back of revenue of RM928 million (3QFY22:RM1.1 billion). The lower operating profit and revenue in 3QFY23 were mainly due to the slower pace of construction activities that are in the final stages and lower project margin.
Meanwhile, the Group’s Property Development Division recorded revenue and operating profit of RM240 million (3QFY22:RM397 million) and RM25 million (3QFY22:RM41 million) respectively. The higher revenue and operating profit in 3QFY22 were mainly due to the sale of vacant lands, which generated sales proceeds of RM214 million and a profit of RM56 million. Excluding the land sale in 3QFY22, the Division achieved stronger revenue and operating profit in 3QFY23. To date, the Group achieved property sales of RM538 million, and its unbilled sales stood at RM383 million.
The Property Investment and Management Division reported higher revenue and operating profit of RM158 million (3QFY22:RM139 million) and RM76 million (3QFY22:RM73 million). The growth in revenue and operating profit in 3QFY23 were due to the uptick in occupancy rates and positive rental reversion of the Group’s malls and hotels.
Dato’ Lee Tuck Fook, Group Managing Director, WCT Holdings Berhad said, “We continue to contend with volatile global economic environment, further compounded by the challenging local engineering and construction sector due to soft market condition. Nonetheless, WCT Group will remain focused on engineering and construction projects execution, property development, shopping malls and hotels management to drive sustainable financial growth from all three core businesses.”
In realising the Group’s purpose of “Building Sustainable and Thriving Communities”, the Group’s Property Development Division, was awarded a provisional Bronze in the Residential Category by GreenRE Sdn Bhd for The Maple Residences at WCity OUG, making it the first green-certified project under the Division. The certification was granted to The Maple Residences, having taken into consideration the green features and innovations in aspects such as Energy Efficiency, Water Efficiency and Environmental Protection.
He added that, WCT will continue to leverage on the robust tourism, leisure activities, and the year-end festivities to attract patrons to the Group’s retail malls and hotels. WCT’s integrated development, Paradigm Johor Bahru, recently witnessed the opening of Hyatt Place Johor Bahru Paradigm Mall. This 202-room hotel with its spacious and modern guestrooms, variety of dining options, and event spaces is attached to Paradigm Mall and Paradigm Residence, providing ultimate convenience for residents, visitors, and travellers to enjoy leisure activities and the surrounding local attractions.