Wing Tai Triples Q4 Net

Source : The Business Times, August 30, 2007

WING Tai Holdings yesterday posted fourth-quarter group net profit of $243.2 million, more than triple the $75.4 million for the previous corresponding period.

The results brought the group's net earnings for the full year to June 30, 2007 to $381.8 million - a record for the property and retail group - and almost three times the $128 million for the preceding year. The full-year results include $189 million in fair value gains on investment properties (mostly Winsland House I & II) as well as profits booked from the sale of residential property units. Wing Tai sold 1,311 homes for $1.8 billion in FY2007.

Shareholders are being rewarded with total net dividends of $194.7 million for FY2007, up from $34.5 million for FY2006. The latest dividend payouts, subject to a tax rate of 18 per cent, comprise a three-cent per share first and final cash dividend, a five-cent per share special cash dividend and a 'special rights' dividend of 25 cents per share to utilise about $42 million of Wing Tai's $82 million Section 44 credit balance as at June 30, 2007.

To strengthen its capital base, Wing Tai also announced a one-for-10 rights issue at $2.05 a rights share, a 41 per cent discount to its stock closing price on Aug 28. Shareholders wishing to subscribe for the rights shares have a choice of using up to all of their 'special rights' dividend (net 20.5 cents a share) for this purpose. If they elect to use all the 'special rights' net dividend, no cash outlay is necessary.

Wing Tai has sold about 70 of the 90 units released earlier this year at its 140-unit Helios Residences project along Cairnhill Circle, achieving an average price of around $3,000 psf. It has has also fully sold its 96-unit The Riverine by the Park condo in the Kallang area for around $1,500 psf.

Projects that the group plans to market in its current financial year include L'viv on Newton Road and Belle Vue Residences on Oxley Walk. Wing Tai has a residential landbank that can be developed into one million sq ft gross floor area (GFA) in Singapore, 10.8 million sq ft GFA in Malaysia and 0.5 million sq ft GFA in Suzhou.

Wing Tai's full-year earnings per share jumped from 17.84 cents in FY2006 to 53.12 cents in FY2007. Net asset value per share rose from $1.60 as at June 30, 2006 to $2.07 as at June 30, 2007. On the stock market yesterday, the counter closed two cents lower at $3.44.