Wing Tai hits an amazing 187% jump in profits

Thanks to sales of completed units.

According to Maybank Kim Eng, Wing Tai posted a 1QFY Jun13 net profit of SGD72.1m, which is a 187% YoY increase and 43% QoQ improvement (excl. revaluation gains in the last quarter).

Here's more from Maybank Kim Eng:

1QFY Jun13 net profit already accounted for 44.5% of our full-year estimate, but we are keeping our forecasts unchanged for now due to the lumpy earnings from the completed projects.

The solid first quarter validates Wing Tai as our top pick amongst the residential developers. It is also benefitting from sales of completed units.

The earnings growth in Q1 was attributable to additional units sold in Belle Vue Residences and Helios Residences. Since the projects have already been completed, profits can be immediately recognized whenever additional units are sold.

Progressive recognition of profits from Foresque Residences and L’VIV also contributed to the profits. Actively marketing Foresque Residences. In the quarter, Wing Tai launched the second phase of Foresque Residences and managed to sell another 115 units at an ASP of around SGD1,100 psf.

To date, more than 80% of the 496-unit project has been sold. We expect Wing Tai to continue its marketing efforts to sell the remaining units by the end of the year.

In September, Wing Tai also joined hands with Metro Holdings and United Engineers to secure a 2.4ha condo site at Prince Charles Crescent via the Government Land Sales Programme for SGD516.3m.