WCT returns to the black in 1Q with RM16mil net profit

KUALA LUMPUR: WCT Holdings Bhd maintains a positive outlook on the construction sector, boosted by a rise in construction activities and the start of large infrastructure projects, including transportation systems, utilities, and industrial projects.

“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,” group managing director Datuk Lee Tuck Fook said in a statement.

WCT anticipates a surge in demand within its property development division’s offerings and launches, fueled by resilient economic growth, particularly from neighbouring countries like China and Singapore.

“Concurrently, the group’s shopping malls, hotels and business aviation services are poised to benefit from increased tourist arrivals and favourable consumer expenditure trends,” Lee said.

WCT returned to the black with a net profit of RM16.14mil in the first quarter ended March 31 (1Q24) compared with a net loss of RM7.7mil in the same quarter last year.

Its revenue rose 15.5% to RM467.4mil from RM404.6mil posted a year ago. Its earnings per stare stood at 1.14 sen against a loss per share of 0.54 sen.

WCT said its engineering and construction division remains the main revenue contributor, accounting for about 61% or RM286mil of the group’s revenue. The division also reported a spike in operating profit of RM31mil as compared to RM10mil operating profit recorded in 1Q23.

Its property development division recorded a 146% increase in revenue of RM118mil against RM48mil in 1Q23. Correspondingly, operating profit increased by about 60% to RM8mil from RM5mil in 1Q23.

To date, the group’s unbilled sales stood at RM731mil.

WCT said that in the current year-to-date, the property investment and management division recorded higher revenue of RM63mil and higher operating profit of RM32mil respectively.