RM561 million revenue, RM58 million profit shows steady footing

PETALING JAYA, Tuesday, August 30 2022 — 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 a higher revenue of RM561 million for its second quarter, which ended on 30 June 2022 (“Q2FY22”) as compared to RM436 million in the preceding year corresponding quarter, 30 June 2021 (“Q2FY21”), demonstrating the Group’s post-pandemic recovery despite a volatile environment. The Group’s profit attributable to equity holders increased more than three times to RM58 million as compared to RM16 million recorded in Q2FY21.

Cumulatively, the Group recorded a higher revenue of RM1.2 billion for the first six months ended 30 June 2022 (“2QFY22”) as compared to the RM880 million registered in the preceding year corresponding period (“2QFY21”). The Group’s profit attributable to equity holders was recorded at RM89 million as compared to RM82 million in 2QFY21.

The Group’s Engineering and Construction Division continues to sustain its performance for the current period, contributing 64% of the Group's consolidated revenue and generated a revenue of RM750 million. The Division recorded an operating profit of RM30 million as compared to RM82 million in the preceding year's corresponding period. The higher operating profit in the preceding year corresponding period were mainly attributable to the reversal of accrued costs resulting from the settlement of an arbitration award totalling RM48 million.

Meanwhile, the Group’s Property Development Division recorded revenue and operating profit of RM324 million (2QFY21:RM233 million) and RM44 million (2QFY21:RM92 million) respectively. The higher revenue was mainly due to an increase in the revenue from the sale of vacant lands of RM214 million in the current period as compared to RM135 million in the preceding year corresponding period. The lower operating profit was mainly attributable to lower profit recognised by the disposal of vacant lands in the current period of RM56 million as compared to RM76 million in the preceding year corresponding period.

The Property Investment and Management Division reported higher revenue of RM92 million (2QFY21:RM77 million) on the back of higher operating profit of RM49 million (2QFY21:RM38 million). The growth in revenue and operating profit arose from pick up of business activities as the county transitioned into the endemic phase.

The Group reported basic earnings per share of 6.28 sen as compared to basic earnings per share of 5.81 sen recorded in the preceding year corresponding period.

Dato’ Lee Tuck Fook, Group Managing Director, WCT Holdings Berhad said, “Amid the challenging macro-economic environment, WCT Group remained steadfast and recorded improved performance as we journey towards post-pandemic.

In July, WCT Malls entered a tripartite collaboration with Tourism Malaysia and Visa, to boost the country’s economic recovery and growth by promoting Malaysia as the most desirable tourist destination. A series of #SHOPPINGEXTRAVAGANZA campaigns were launched across WCT retail malls, namely, Paradigm Mall PJ, Paradigm Mall JB, gateway@klia2, and SkyPark Terminal to reward shoppers.

Meanwhile, the Group’s property development division introduced its latest low-density apartment, Adenia Apartments earlier this month. Located in the royal town of Klang within the mature township of Bandar Parklands, the new property offers premium amenities at an affordable price of RM375,000 per unit. Adenia Apartments will be sought after by homebuyers that seek a convenient lifestyle experience, particularly those urbanites with a high demand for convenience – accessibility, facilities and amenities.

The Group has been consistent in leveraging on its strength to deliver its growth strategy across all business divisions. The Property Development and Property Investment and Management Division anticipates that the current endemic phase will continue to stimulate demand for our property development offers and launches. The Group’s retail malls will continue to organise exciting events, introduce exclusive customer experiences and unique F&B offerings to its customers,” added Dato’ Lee.