WCT : is Back on Track with Net Profit of RM16 Million in Q1FY2024

WCT Group is Back on Track with Net Profit of RM16 Million in Q1FY2024

29 May 2024

PETALING JAYA, 29TH MAY 2024 - 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 higher revenue of RM467 million in the first quarter ended 31 March 2024 ("Q1FY24") as compared to RM405 million in the preceding year's corresponding quarter ended 31 March 2023 ("Q1FY23"). The Group recorded profit attributable to equity holders of RM16million in Q1FY24 as compared to RM8 million loss in Q1FY23.

Engineering and Construction

The Group's Engineering and Construction Division remains the main revenue contributor, accounting for about 61% or RM286 million (1QFY23: RM304 million) of the Group's revenue. The Division also reported a spike in operating profit of RM31 million as compared to RM10 million operating profit recorded in 1QFY23. The lower revenue in 1QFY24 was mainly due to slower construction progress, while the higher operating profit was due to reversal of costs accrued.

WCT recently completed the first phase of the new terminal at Sultan Ismail Petra Airport (LTSIP), Pengkalan Chepa, Kelantan. The new terminal was safely handed over to the authority and commenced operation on 1 May 2024. The completed facilities include the phase 1 terminal building with a dedicated VIP lounge, 14 check-in counters, baggage handling system, 3 aerobridges, an elevated car park, substations, DVOR and landing instrumentation system, 2 taxiways, and apron parking. Upon completion of the project, the new airport terminal's capacity is expected to increase from 1.5 million to 4 million passengers annually.

Property Development

Meanwhile, the Group's Property Development Division recorded a 146% increase in revenue of RM118 million as compared to RM48 million in 1QFY23. Correspondingly, operating profit increased by approximately 60%, from RM5 million in 1QFY23 to RM8 million in the current quarter. The increase in revenue and operating profit were primarily driven by the higher sales of properties, specifically Pavilion Mont' Kiara, Kuala Lumpur, which was launched in August 2023. In April 2024, the high-end luxury residence received the provisional GreenRE Silver certification in the Residential Category from GreenRE Sdn Bhd. This marks WCT's second GreenRE accolade, underscoring the division's dedication to sustainability and environmental responsibility. To date, the Group's unbilled sales stood at RM731 million.

Property Investment and Management

For the current year-to-date, the Property Investment and Management Division recorded higher revenue of RM63 million (1QFY23: RM52 million) and higher operating profit of RM32 million (1QFY23: RM28 million) respectively. The higher revenue and profit in the current quarter are mainly attributable to the uptick in occupancy and rental rates across WCT Malls. Committed to fostering excellence and robust partnerships within the retail industry, WCT Malls was recently honoured with both the Excellence in Mall Management Award and the Best Retailer Collaboration Award at the 2024 Global Brand Magazine Awards.

Dato' Lee Tuck Fook, WCT's Group Managing Director said "WCT maintains a positive outlook on the construction sector, supported by the noticeable increase in construction activities and the initiation of large infrastructure projects, including transportation systems and utilities, as well as industrial projects, which are gaining momentum. Looking ahead, our Engineering and Construction Division remains focused on efficient project execution and recuperation of costs from completed projects. To bolster the Group's order book, the company is allocating additional resources to secure new projects both domestically and internationally.

With resilient economic growth, particularly from neighbouring countries like China and Singapore, we anticipate a surge in demand within our Property Development Division's offerings and launches. Concurrently, the Group's shopping malls, hotels and business aviation services are poised to benefit from increased tourist arrivals and favourable consumer expenditure trends".