WCT Holdings Berhad (“WCT” or “the Group”), an investment holding company with businesses in engineering and construction, property development, and investment in and management of retail malls and hotels, recorded revenue of RM376 million in the second quarter ended 30 June 2024 (“Q2FY24”) as compared to RM424 million in the preceding year’s corresponding quarter which ended on 30 June 2023 (“Q2FY23”). The Group recorded profit attributable to equity holders of RM31 million in Q2FY24, as compared to RM13 million in Q2FY23.
Cumulatively, the Group recorded higher revenue of RM844 million for the first six months ended 30 June 2024 (“2QFY24”), compared to RM829 million in the corresponding period of the previous year (“2QFY23”). The Group’s profit attributable to equity holders increased significantly to RM47 million from RM5.3 million in 2QFY23. The growth was supported by favourable market conditions and meaningful contributions from all business divisions, bolstering overall performance.
The Group’s Engineering and Construction Division maintained its performance during the current period, contributing 56% of the Group’s consolidated revenue with a total of RM473 million (2QFY23: RM579 million). The lower revenue in 2QFY24 was mainly due to slower construction progress. The Division reported an operating profit of RM43 million as compared to RM23 million recorded in 2QFY23.
Dato’ Lee Tuck Fook, Group Managing Director of WCT, said, “Our efforts in construction order book replenishment has continued to bear fruit, with two contract wins in 2024, namely the North-South Expressway (PLUS) Phase 1: Senai (Utara) Sedenak (Package A) widening project and construction, and completion of common infrastructure works and new vehicular underpass at the Kwasa Damansara Township Development, Selangor. The Group’s outstanding order book stands at RM 3.1 billion.
The Group’s Property Development Division recorded an increase in revenue and operating profit of RM245 million (2QFY23: RM146 million) and RM24 million (2QFY23: RM16 million) respectively. The higher revenue and operating profit were primarily driven by higher sales and billing of properties in the current period. To date, the Group’s unbilled sales stood at RM749 million.
The operating profits of the Group’s Property Investment and Management Division increased to RM64 million (2QFY23: RM51 million) on the back of higher revenue of RM126 million (2QFY23: RM105 million). The higher profit and revenue are attributed to higher occupancy and rental rates for WCT’s malls and higher contribution from its hotels.
WCT Malls has earned widespread recognition through a series of esteemed industry awards, including the recent Property Landmark Branding Award – Airport Retail and Commercial Development at The BrandLaureate Property Branding Awards 2024. WCT Malls remains committed to creating vibrant spaces with an appealing tenant mix and providing unique shopping experiences for its shoppers. Meanwhile, WCT’s newest hotel, Hyatt Place Johor Bahru Paradigm Mall, continues to attract strong interest and high demand from guests, particularly from Singapore.
“The Group recorded a satisfactory financial performance for the first half of 2024. Our Engineering & Construction Division will continue to pursue new opportunities to replenish its order book,” Dato’ Lee concluded.
