PROPERTY and retail company Wing Tai Holdings’ net profit continued its decline in the first half of its 2025 fiscal year due to lower contributions from its property assets, after selling one of its condominium projects in Singapore.
The company also incurred higher sales and finances costs for the six-month period ended Dec 31, 2024.
In a bourse filing on Tuesday (Feb 11), the company said it posted a net profit of S$10.1 million for H1 2025. This marks a 51 per cent decline from the S$20.5 million in the corresponding period in the prior year.
This is the second consecutive year that its net profit dropped for the first half. Its net profit of S$20.5 million for the first half of FY2024 was a 68 per cent drop compared to the same period a year ago.
Despite the lower net profit, Wing Tai recorded higher revenue for the reporting period. Revenue came in at S$112.7 million, a 15 per cent increase from S$97.7 million in the year-ago period.
The increase is mainly due to the higher contribution from its development properties. In particular, progressive sales were recognised from its Singapore condominium development The LakeGarden Residences, as well as its Malaysia housing project Jesselton Hills.
However, the absence of contribution from The M in Singapore after it was sold in the previous financial year led to a fall in operating profit S$3.7 million, down 59 per cent from S$9.2 million in the previous year.
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Cost of sales for the half-year jumped 43 per cent to S$62.5 million, from S$43.9 million. Meanwhile, finance costs increased 32 per cent to S$22.1 million, from S$16.7 million over the same period.
As at Dec 31, 2024, the group’s net asset value per share was S$3.91 – compared to S$3.90 as at Jun 30, 2024.
In its filing, it noted that the Singapore economy is expected to slow down in 2025, with a projected gross domestic product growth rate ranging between 1 and 3 per cent.
“This is primarily due to escalating global trade conflicts that could disrupt global supply chains and dampen demand. Singapore’s economic outlook however remains positive as its strong fundamentals and proactive policy responses should enable it to navigate the challenges ahead,” it added.
Shares of Wing Tai declined 0.8 per cent or S$0.01 to close at S$1.21 on Tuesday.
