Wing Tai's net profit slips 27% to $2.1m in Q3

Due to slower residential sales.

Wing Tai reported that its third-quarter net profit dropped 27% year-on-year to $2.1 million, on back of continued headwinds in the residential market.

The group's net profit also declined due to a one-off $21.1 million gain in the corresponding period last year, related to the sale of shares in a property subsidiary in Indonesia.

The group's revenue dropped 35% to $43 million during the quarter. Earnings came mostly from progressive sales in its residential projects The Tembusu and Le Nouvel Ardmore, as well as The Lakeview in China.

Going forward, Wing Tai expects operating conditions in key markets to remain challenging.

“Buying sentiment for private residential property in Singapore is expected to remain subdued. In Malaysia, the cautious buying sentiment in the property market will remain. In China, residential property sales have improved in certain cities underpinned by some relaxation of home purchase restrictions. The Group will monitor the market closely and will at appropriate times release more residential units for sale in the current year,” said Wing Tai.