WCT Remains Resilient Amid Challenging Operating Landscape
14 March 2024
PETALING JAYA: WCT Holdings Bhd, an investment holding company with businesses in engineering and construction, property development and investment, and management of retail malls and hotels recorded revenue of RM402 million for its fourth quarter ended Dec 31, 2023 (Q4''23) as compared to RM469 million in the preceding year''s corresponding quarter ended Dec 31, 2022 (Q4''22).
Its loss attributable to equity holders in Q4''23 was RM246 million as compared to RM 27 million profit attributable to equity holders recorded in Q4''22.
For the financial year ended Dec 31, 2023 (Q4''23), the group recorded lower revenue of RM1.7 billion as compared to RM2.1 billion registered in the preceding year (Q4''22). 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 Q4''22, The group''s engineering and construction division remains the main contributor, accounting for RM1.1 billion (Q4''22: 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 Q4''22. The lower revenue in Q4''23 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 FY23, WCT completed the TRX Infrastructure and Roadway Works project whichincludes the construction of roadways and 2.5km of underground road structures, connecting majorroads 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.
Meanwhile, the group''s property development divisionrecorded revenue of RM362 million (Q4''22: RM452 million) with a higher operating profit of RM20 million (Q4''22: RM18 million). As of Dec 31, 2023 the group recorded property sales of RM 856 million (Q4''22: 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 Dec 31,2023.
For the current year, the property investment and management division recorded higher revenue of RM217 million (Q4''22: RM184 million) and lower operating profit of RM 121 million as compared to RM157 million in Q4''22. 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 retail malls.
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