PETALING JAYA: WCT Holdings Bhd
’s net profit rose 8.8% to RM40.32mil, or 2.92 sen earnings per share (EPS) in the first quarter ended March 31 against RM37.06mil, or 2.62 sen EPS in the same quarter last year
The engineering and construction recorded a lower revenue of RM515mil as compared to RM540mil recorded in the first quarter of the last financial year mainly due to lower revenue recognition of certain engineering and construction projects which are nearing completion.
Managing director Datuk Lee Tuck Fook its performance for the current year to date has been in line with our expectations amidst the prevailing challenging market conditions.
“Our engineering and construction division continues to be the group’s main contributor of revenue, accounting for 73% of the group’s consolidated revenue, supported by its strong outstanding order book comprising a mix of civil and infrastructure works and building construction jobs,” he said in a statement.
WCT’s engineering and construction division posted an operating profit of RM33mil from RM59mil a year ago on the back of revenue of RM378mil against RM446mil previously.
The group said the lower operating profit was mainly due to lower expected margins from the group’s ongoing construction projects and higher proportion of building construction projects with relatively lower margins.
The lower revenue recognition is mainly due to some of the existing projects nearing completion and the newly secured jobs which are still in early stages of construction.
Its property development division recorded a revenue of RM85mil against RM56mil last year. There was a significant increase in the operating profit of this division from RM9mil to RM37mil mainly due to higher revenue and profit arising from a completed sale of an undeveloped land during the quarter under review.
“In 2019, subject to market conditions, our property development division plans to launch new property projects which would better cater to the consumer demand for more affordable residential units as well as continue our efforts to reduce our unsold properties and idle landbanks.
“Our property investment and management division aims to continue improving on the occupancy level and tenancy mix as well as enhancing our investment properties to stay relevant amidst the changing consumer behaviour and spending patterns,” Lee said, adding that this division is expected to contribute positively to the group’s revenue and profit.