Wong Fong Industries' profit plummets 76.9% to $870k

Blame it on deferred project deliveries and weak equipment sales.

An otherwise unwanted welcome treat, newly-listed Wong Fong Industries’ first set of results revealed that profit attributable to the owners of the company sank 76.9% to $870k in 1H16 compared to the $3.8m in the same period a year ago.

The group’s revenue also plunged 30.6% from $44.1 million for the half year ended 30 June 2015 to $30.6 million for the corresponding period in 2016.

“This is primarily attributable to deferred projects deliveries and decrease in equipment sales due to a challenging business environment and competition from new market entrants,” Wong Fong explained.

Despite the current economic headwind, the group is optimistic the demand from the construction industry will be sustained. Construction demand is estimated to be between S$26.0 billion and S$35.0 billion in 2017 and 2018, Wong Fong added.

Wong Fong is a land transport engineering business which joined the catalist board of SGX-ST only in July this year.