Wing Tai’s profit sinks by 92% to $2m

No one-time gains to lean on this time.

The rug has been pulled from under the property company this time, as it was left gasping after the absence of a $21.2m divestment gain from the sale of shares in an Indonesian property subsidiary.

Adding to the company’s woes, JV and associate contributions in Hong Kong and JV projects in Singapore also registered dismal profits.

However, analysts from OCBC say a bright spot remains for Wing Tai, as revenues increased by 6% yoy to $170.3m, due to contributions from The Tembusu, Le

Nouvel Ardmore, The Lakeview in China and contributions from Phase 2 of Jesselton Hills in Penang.

“Wing Tai’s net gearing ratio currently stands at 14% and we believe the group is well-positioned to ride out the current down-cycle,” OCBC said.