Remeasurement gain from JV helps lift WCT's 3Q net profit despite revenue dip

• Its property development segment also saw an increase in operating profit to RM37 million from RM25 million a year ago, as revenue rose to RM384 million from RM240 million. The increase in earnings and revenue was primarily attributed to higher sales and billing of properties.

KUALA LUMPUR (Nov 27): WCT Bhd recorded a net profit of RM173.22 million for the third quarter ended Sept 30, 2024 (3QFY2024), compared with a net loss of RM13.54 million a year earlier, thanks to the remeasurement of interest in a jointly controlled entity amounting to RM184 million.

The construction company reported earnings per share of 12 sen, against a loss per share of 0.96 sen in 3QFY2023.

Quarterly revenue, however, decreased 11.9% year-on-year to RM437.46 million from RM496.56 million, WCT's bourse filing showed.

The company’s engineering and construction segment saw its operating profit rise to RM35 million from RM18 million in 3QFY2023. However, revenue fell to RM700 million from RM928 million, mainly due to slower construction progress.

Its property development segment also saw an increase in operating profit to RM37 million from RM25 million a year ago, as revenue rose to RM384 million from RM240 million. The increase in earnings and revenue was primarily attributed to higher sales and billing of properties.

To date, the company’s unbilled sales stands at RM1,046 million.

WCT did not declare any dividend for the latest quarter.

For the first nine months of FY2024, WCT recorded a net profit of RM220.63 million against a net loss of RM8.2 million in the previous corresponding period, while cumulative revenue fell 3.4% to RM1.28 billion from RM1.3 billion.

WCT group managing director Datuk Lee Tuck Fook said despite challenging market conditions, the property development segment has shown resilience, particularly in Johor, where significant infrastructure developments have driven healthy property demand.

“Looking ahead, our engineering and construction division will remain focused on achieving key project milestones while pursuing infrastructure and building-related tenders both locally and regionally.

“Meanwhile, the property development and property investment & management divisions are optimistic that Malaysia’s economic growth, coupled with improving consumer and business confidence, will drive demand for our property offerings and services,” he added.

WCT’s share price fell half a sen or 0.55% to 90.5 sen on Tuesday, giving the company a market capitalisation of RM1.4 billion. The stock has jumped 81% since the start of the year.

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