WCT Group Remains Resilient Amid Challenging Operating Landscape
29 February 2024
PETALING JAYA, 29TH FEBRUARY 2024 – WCT Holdings Berhad (“WCT” or “the Group”), an investment holding company with businesses in engineering and construction, property development and investment in and management of retail malls and hotels, recorded revenue of RM402 million for its fourth quarter ended 31 December 2023 (“Q4FY23”) as compared to RM469 million in the preceding year’s corresponding quarter ended 31 December 2022 (“Q4FY22”). Its loss attributable to equity holders in Q4FY23 was RM246 million as compared to RM27 million profit attributable to equity holders recorded in Q4FY22.
For the financial year ended 31 December 2023 (“4QFY23”), the Group recorded lower revenue of RM1.7 billion as compared to RM2.1 billion registered in the preceding year (“4QFY22”). The Group recorded a loss attributable to equity holders of RM254 million as compared to the profit attributable to equity holders of RM129 million registered in 4QFY22.
Engineering and Construction
The Group’s Engineering and Construction Division remains the main contributor, accounting for RM1.1 billion (4QFY22: RM1.5 billion) or 66% of the Group’s consolidated revenue. The Division reported operating loss of RM220 million as compared to RM48 million operating profit recorded in 4QFY22. The lower revenue in 4QFY23 was mainly due to slower construction progress, while the operating loss was due to lower margins as a result of prolongation cost, increase in the price of construction materials and labour costs. The lowered margins led to the reversal of profits which have been accrued on the various projects.
In FY2023, WCT completed the TRX Infrastructure and Roadway Works project which includes the construction of roadways and 2.5km of underground road structures, connecting major roads and highways with the Tun Razak Exchange, which is Malaysia’s international financial centre. WCT also completed The Exchange TRX and Pavilion Damansara Heights, adding another two completed shopping malls to its retail malls and commercial buildings portfolio.
Property Development
Meanwhile, the Group’s Property Development Division recorded revenue of RM362 million (4QFY22: RM452 million) with a higher operating profit of RM20 million (4QFY22: RM18 million). As of 31 December 2023, the Group recorded property sales of RM856 million (4QFY22: RM421 million) mainly contributed by the newly launched Pavilion Mont’ Kiara in August 2023. The Group’s unbilled sales stood at RM640 million as at 31 December 2023.
Property Investment and Management
For the current year, the Property Investment and Management Division recorded higher revenue of RM217 million (4QFY22: RM184 million) and lower operating profit of RM121 million as compared to RM157 million in 4QFY22. The higher revenue in the current year is mainly attributable to the resurgence of business activities in the retail sector with an uptick in occupancy rates and positive rental reversion of the Group’s retail malls.
Dato’ Lee Tuck Fook, WCT’s Group Managing Director said “We continue to contend with volatile global economic environment, further compounded by the challenges posed by the engineering and construction sector. Nonetheless, WCT Group will remain resilient and focus on engineering and construction projects execution, cost recovery from completed projects and order book replenishment.
The Property Development Division will focus on W City Larkinton, its latest development at the prestigious Johor Golf & Country Club. The first phase features the launch of serviced apartments and retail shops. The Group’s shopping malls and hotels will continue to leverage on the higher tourist arrivals and encouraging consumer spending, which is supported by the improved labour market conditions.”
