Recording RM436 million in revenue and RM16 million profit attributable to equity holders amidst the pandemic
WCT Holdings Berhad (“WCT” or “the Group”), an investment holding company with businesses in engineering and construction, property development and investment in and management of retail malls and hotels recorded a higher revenue of RM436 million for its second quarter ended 30 June 2021 (“Q2FY21”) as compared to RM375 million in the preceding year’s corresponding quarter. The Group’s profit attributable to equity holders increased more than 2 times to RM16 million as compared to RM7 million recorded in the corresponding second quarter of 2020.
The positive performance is a testimony of the Group’s resilience amidst the Covid-19 resurgence during the second quarter of 2021 which impacted economic recovery and growth.
“Bank Negara Malaysia has revised its full-year gross domestic product growth forecast for Malaysia to between 3% and 4%, from the previous forecast of between 6% and 7.5% for 2021. Despite the revision, the Group remains optimistic of the economic recovery with the implementation of the first phase of the National Recovery Plan (NRP) and the gradual transition of the phases upon achieving herd immunity with the rollout of vaccines.
The current progress of the National COVID-19 Immunisation Programme, having fully vaccinated over 50% of the country’s adult population would further pave the way towards resumption of economic activities, safer re-opening of our offices and premises and execution of our buildings and infrastructure projects as WCT continues to prioritise the well-being of our employees, customers and business associates, general public and communities in which we operate in,” said Dato’ Lee Tuck Fook, Group Managing Director.
Cumulatively, the Group registered a higher revenue of RM880 million for the first six months ended 30 June 2021, which is 19% above the RM738 million recorded in the preceding year’s corresponding period. The Group's profit attributable to equity holders increased significantly to RM82 million as compared to RM7 million achieved in the preceding year’s corresponding period.
The Group’s Engineering and Construction Division continues to perform, contributing 65% of the Group’s consolidated revenue in the first six months financial period ended 30 June 2021 and recorded a revenue of RM570 million (2QFY20:RM507 million). The Division registered an operating profit of RM82 million as compared to RM4 million recorded in the preceding year’s corresponding period.
The Group’s Property Development Division recorded higher revenue and operating profit of RM233 million (2QFY20: RM144 million) and RM92 million (2QFY20: RM49 million), respectively. The higher revenue and operating profit were attributed to the sale of undeveloped lands during the period under review.
The Property Investment and Management Division registered a lower revenue and operating profit of RM77 million (2QFY20: RM87 million) and RM38 million (2QFY20: RM41 million), respectively. The drop in revenue and operating profit was due to business disruptions caused by the COVID-19 pandemic and the necessary movement restrictions imposed by the Government to curb the resurgence of COVID-19 cases in the country.
Basic earnings per share was at 5.81 sen as compared to 0.53 sen in the preceding year’s corresponding period.
Moving forward, the Group’s Engineering and Construction Division will continue to focus on project execution, whilst eyeing for new opportunities to replenish the order book. The recently secured Sapangar Bay container port expansion contract in July has further strengthened the Group’s outstanding order book to approximately RM5.37 billion. For the current year to date, the Group’s property sales increased more than two-fold to RM362.1 million from RM148.6 million recorded in the preceding year’s corresponding period. As of 30 June 2021, the Group’s unbilled sales stood at RM147.1 million. The Property Development Division and Property Investment and Management Division expect the successful rollout of vaccines will lead to positive market sentiments and stimulate the demand for property. The eventual easing of restrictions on travel and renewed consumer confidence are expected to revitalize the five retail malls under the Group’s management as well as the hotels and business aviation services.
