WCT Group Records Steady Performance in Q4FY22
02 March 2023

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, registered revenue of RM466 million for its fourth quarter, which ended on 31 December 2022 (“Q4FY22”) as compared to RM368 million in the preceding year’s corresponding quarter, 31 December 2021 (“Q4FY21”). The Group registered profit attributable to equity holders at RM26 million in Q4FY22 as compared to RM51 million recorded in Q4FY21.

For the financial year ended 31 December 2022 (“4QFY22”), the Group’s revenue grew by 24% to RM2.1 billion as compared to the RM1.7 billion registered in the preceding year (“4QFY21”). The Group’s profit attributable to equity holders surged by 31% to RM127 million as compared to RM97 million recorded in 4QFY21.

The Group’s Engineering and Construction Division remains the main contributor, accounting for RM1.5 billion or 70% of the Group’s consolidated revenue (4QFY21: RM1.2 billion). The Division’s operating profit reduced to RM42 million as compared to RM302 million recorded in 4QFY21. The higher operating profit in 4QFY21 were mainly attributable to the favourable settlement of arbitration awards.

Meanwhile, the Group’s Property Development Division recorded higher revenue of RM452 million (4QFY21: RM317 million) with a lower operating profit of RM24 million (4QFY21: RM62 million). The higher revenue was mainly due to higher sales of properties and vacant lands, while the lower operating profit were mainly due to impairment of properties and lower profits recognised from the disposal of the vacant lands. As of 31 December 2022, the Group recorded property sales of RM421 million (4QFY21: RM524 million) and the Group’s unbilled sales stood at RM273 million.

The Property Investment and Management Division recorded improved performance with an increase of 21% in revenue of RM184 million (4QFY21: RM152 million), while the division’s operating profit surged 138% to RM157 million as compared to the RM66 million recorded in 4QFY21. The strong results were chiefly attributed to fair value gain on investment properties and improved performance across WCT’s shopping malls and hotels, with continued robust demand from customers after the full reopening of economies and international borders.

The Group’s basic earnings per share was registered at 8.97 sen as compared to the basic earnings per share of 6.90 sen recorded in the preceding year.

Following the results and subject to the shareholders’ approval at the forthcoming Annual General Meeting, the Directors of the Group recommended a final dividend of 0.5 sen per ordinary share under the single-tier system in respect of the financial year ended 31 December 2022, amounting to approximately RM7.1 million.

Dato’ Lee Tuck Fook, WCT’s Group Managing Director said “WCT Group remained resilient and is pleased to have achieved satisfactory overall performance in 2022 amid the volatile economic conditions and global headwinds. The combined achievements of our diverse core businesses and improvements in overall business activities in the endemic phase, have contributed to the company’s overall performance.”

Looking ahead, the Group is cautiously optimistic of its prospects for financial year 2023. The continuous recovery of the domestic economy as well as improving consumer and business sentiments will augur well for the Group’s businesses.

Dato Lee added, “In 2023, we will remain focused on project execution, whilst pursuing new opportunities for engineering and construction jobs to replenish our outstanding order book of RM3.53 billion. The Property Development Division will focus on new launches of affordable luxury projects in the Klang Valley and clearing of its property inventory amidst the current challenging property landscape. The Group’s shopping malls and hotels will leverage on the robust tourism activities and continue to introduce exclusive customer experiences and unique F&B offerings to our customers.”

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