WCT Holdings slips into the red with net loss of RM7.69mil for Q1

KUALA LUMPUR: WCT Holdings Bhd has reported a net loss of RM7.69 million for the first quarter (Q1) ended January 31, 2023 (FY23) compared to a net profit of RM30.56 million a year ago, on the back of lower revenue.

According to the company's filing to Bursa Malaysia today, quarterly revenue fell 33.1 per cent to RM404.65 million from RM604.72 million.

WCT said in comparison to the preceding year's corresponding quarter, the company would have registered an improvement in revenue of RM14 million and a reduction in loss attributable to equity holders by RM17 million if the Q1 FY22 revenue and profit from land sales which amounted to RM214 million and RM56 million respectively were excluded.

As such, the company registered a loss per share of 0.54 sen for the period from earnings per share of 2.16 sen in 1Q22.

On a segmental basis, WCT's engineering and construction division contributed 75 per cent of the company's consolidated revenue and generated a revenue of RM304 million as compared to RM292 million a year ago.

Its property development division registered revenue and operating profit of RM48 million and RM6 million, respectively, mainly due to the sale of vacant lands, which generated sales proceeds of RM214 million and a profit of RM56 million. 

The company's property investment and management division reported higher revenue of RM52 million resulting in a higher operating profit of RM27 million, boosted by increased business activities after the full reopening of economies and international borders.

WCT group managing director Lee Tuck Fook said amid market uncertainties and the evolving macro-economic conditions, the company remains steadfast with contributions from across its core businesses. 

He added that moving forward, WCT's engineering and construction division will continue to pursue new opportunities locally and abroad to replenish our order book while focusing on existing project execution. 

"We believe that the resilient Malaysian economy coupled with the reopening of the China border will stimulate further the demand for our property development offers and launches. 

"The property investment and management division also foresees that the strong Malaysian household spending, together with the pickup in the arrival of tourists, will help revitalise its malls, hotels, and business aviation services," he said.

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