KUALA LUMPUR: WCT Holdings Bhd
reported a 71% jump in third quarter earnings to RM41mil from the previous corresponding quarter on higher revenue of RM470mil versus RM414mil a year ago.
This brings the group's year-to-date net profit to RM95mil, a 47% increase from RM65mil posted a year earlier. This is despite lower revenue of RM1.33bil compared with RM1.48bil in the previous corresponding period, owing to higher contribution from its ongoing local construction jobs.
"Our continued focus on enhancing profit margin from our construction jobs, through greater efficiencies and better cost management, had impacted our bottom-line in a positive manner,” said WCT group managing director Datuk Lee Tuck Fook.
Basic earnings per share for the year so far increased to 7.04 sen compared with 5.23 sen in the year-ago period.
For the nine months to Sept 30, the group's engineering and construction division posted revenue and operating profit of RM928mil and RM100mil as compared to RM1.19bil and RM34mil in the preceding year period
The property development and investment division posted revenue and operating profit of RM398mil and RM72mil for the period as compared to RM285mil and RM85mil previously as profit margins were eroded from a soft property market.
“In view of the challenging operating landscape, we had intensified our sales and marketing efforts to promote our existing property offerings as opposed to launching more products into the market," said Lee.
Looking ahead, the group expects its engineering and construction order book to grow, after having secured about RM1.8bil in infrastructure contracts.
“We also expect the construction industry to remain vibrant in the foreseeable future, reinforced by the Government’s continuing initiatives as announced during the recent Federal Budget 2018," said Lee.
The expected opening of Paradigm Mall in Johor Baru and New World Hotel at Paradigm in Kelana Jaya is expected to boost contribution from the property investment and management division.
The group said it will also embark on various de-gearing initiatives such as equity fundraising and assets monetisation to strengthen its financial position.
"Barring any unforeseen circumstances, the Board is of the view that the group will be able to deliver satisfactory results in the current financial year," the group said in its announcement.
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