The group expects to be in the red for FY2024 due to fair value changes and impairments for overseas properties

 

DEVELOPER Wing Tai Holdings : W05 -1.6%warned on Wednesday (Aug 14) that its Hong Kong associate Wing Tai Properties may report a loss of HK$1.3 billion to HK$1.4 billion (S$215.9 million to S$236.4 million) for the six months to Jun 30, 2024. This would widen the loss of HK$374.2 million that the associate reported in the year-ago period.

 

Wing Tai Properties said that, on the basis of preliminary findings from its semi-annual independent revaluation, &ldquo the aggregate of adverse changes in the fair value of the group&rsquo s investment properties and the impairment provision for the group&rsquo s properties under development&rdquo are estimated to be more than HK$1 billion.

 

This is much larger than the fair value decline of HK$480 million recorded for the group&rsquo s investment properties in the year-ago period. No impairment provision for properties under development were made then.

 

Changes in fair values and impairment provision are non-cash items, and Wing Tai Properties said that the &ldquo overall financial, business and trading positions of the group remain healthy&rdquo .

 

Wing Tai Properties is the developer of various residential and commercial projects in Hong Kong, where property prices have been depressed for some time.

 

Wing Tai Holdings owns 33 per cent of Wing Tai Properties, based on its latest annual report. On Aug 6, Wing Tai Holdings announced it was likely to report a loss for FY2024 (the company has a June year-end) due to fair value changes and impairments for overseas properties.

 

It had reported a profit of S$13.3 million for FY2023, down from S$140.2 million in FY2022.

 

The group added, however, that its financial position &ldquo remains healthy with a low net gearing ratio of approximately 0.07&rdquo as at end-June.

 

Wing Tai Holdings expects to announce its results on Aug 27.

 

Singapore-listed shares of Wing Tai Holdings closed at S$1.23 on Wednesday, down 1.6 per cent, ahead of the announcement.

The land parcel has a permissible gross floor area of 32,527 square metres

 

WING Tai : W05 +0.72%&rsquo s wholly owned subsidiary has been awarded a 99-year leasehold residential site in River Valley at the tender price of about S$464 million, and plans to build over 400 apartments there.

 

Winchamp Investment&rsquo s win, located at the junction of River Valley Green and River Valley Road, has a permissible gross floor area of 32,527 square metres (sq m), said Wing Tai in a bourse filing on Thursday (Jun 27).

 

Urban Redevelopment Authority is the awarding agency of the land parcel of about 9,300 sq m.

 

WING Tai : W05 +0.72% has priced S$100 million in fixed-rate senior unsecured notes due Apr 3, 2029, at 4.38 per cent. Coupon payments will be made semi-annually.

 

The notes were issued under the property developer&rsquo s S$1 billion multicurrency debt-issuance programme established on Mar 6.

 

Net proceeds from the issuance will be used to finance working capital requirements and investments, and to refinance existing borrowings.

 

DBS Bank, HSBC and OCBC were the joint book runners for the issue. DBS Bank and OCBC were the joint global coordinators.

 

The property developer and fashion retailer on Wednesday (Mar 6) said it plans to use the net proceeds for general working capital and investments, as well as refinancing existing borrowings.

 

It may issue perpetual securities and notes denominated in Singapore dollars or any other currency, in various amounts and tenors, at fixed, floating, variable or hybrid interest rates. They may also not bear any interest.

 

The debt issuance programme has obtained in-principle approval from the Singapore Exchange. HSBC is the arranger and dealer of the facility.

Wing Tai Holdings : W05 0% chairman and managing director Cheng Wai Keung has continued to build his deemed interest in the company, through his spouse Helen Chow&rsquo s acquisition of shares, which began in September 2023.

 

Between Feb 23 and Feb 27, Cheng increased his deemed interest in the leading real estate developer and lifestyle retailer by 210,000 shares. He now maintains a 61.46 per cent total interest in the company, compared with 60.92 per cent previously.

 

As Wing Tai Holdings reported on Feb 6, the group expects buying sentiment for private residential property in Singapore to remain cautious until greater economic confidence returns, and, at the appropriate times, it will release more residential units for sale.

Wing Tai Holdings : W05 -0.77% chairman and managing director Cheng Wai Keung has continued to build his deemed interest in the company, through his spouse Helen Chow acquiring shares.

 

Between Feb 16 and 22, Cheng increased his deemed interest in the leading real estate developer and lifestyle retailer by 296,900 shares. Cheng now maintains a 61.44 per cent total interest in the company. This has increased from 60.92 per cent, prior to Chow&rsquo s recent sequence of acquisitions that began in September 2023. Wing Tai Holdings has four main business segments &ndash development properties, investment properties, retail and other operations comprising mainly investing, central management and administrative activities.

 

For its H1FY2024 (ended Dec 31), Wing Tai Holdings recorded a total revenue of S$97.7 million as compared to the S$260.8 million of revenue in H1FY2023. This decrease was mainly due to the lower contribution from development properties. Revenue for the current period was largely attributable to the progressive sales recognised from The M at Middle Road in Singapore and the sale of residential units in Jesselton Hills in Malaysia. The group added that its net asset value per share as at Dec 31, 2023, was S$4.05 as compared to S$4.13 as at June 30, 2023, with the group&rsquo s net gearing ratio as at Dec 31, 2023, was 0.03 times as compared to 0.08 times as at June 30, 2023.

 

Wing Tai Holdings W05 - has reported earnings of $20.5 million for its 1HFY2024 ended Dec 31, 2023, down 68% compared to its earnings of $63.3 million in the same period last year.

 

For the half-year period, earnings per share (EPS) also decreased to 2.24 cents, down from 7.87 cents per share in 1HFY2023.

 

Wing Tai recorded a 1HFY2024 revenue of $97.7 million, 63% lower y-o-y due to a lower contribution from development properties. Revenue for the period was largely attributable to the progressive sales recognised from The M at Middle Road in Singapore and the sale of residential units in Jesselton Hills in Malaysia.

 

The group recorded an operating profit of $9.2 million in 1HFY2024 as compared to $29.1 million in the same period last year. The decrease was also mainly due to lower contributions from development properties.

 

Share of profits from associated and joint venture companies was $32.2 million in 1HFY2024, slightly lower than the $33.4 million recorded in 1HFY2023. The decrease was primarily due to lower contribution from Wing Tai Properties Limited in Hong Kong and partially offset by higher contribution from Uniqlo. 

 

Wing Tai&rsquo s cost of sales also decreased 76% y-o-y to $43.9 million for 1HFY2024, while gross profit came in 34% lower y-o-y at $53.8 million.

 

The group&rsquo s cash and cash equivalents stood at $683.8 million as at Dec 31, 2023.

 

In its outlook, the group says it expects heightened geopolitical uncertainties to weigh on the global economy and Singapore' s economic growth. &ldquo Buying sentiment for private residential property in Singapore is expected to remain cautious until greater confidence returns.&rdquo

 

Wing Tai says it will release more residential units for sales at &ldquo appropriate times&rdquo .

Wing Tai : W05 +0.78% chairman and managing director Cheng Wai Keung has continued to build his deemed interest in the company, through his spouse Helen Chow acquiring shares. Between Jan 3 and 4, Cheng increased his deemed interest in the leading real estate developer and lifestyle retailer by 168,000 shares. Cheng maintains a 61.39 per cent total interest in the company. This has increased from 60.92 per cent, prior to Chow&rsquo s recent sequence of acquisitions which began Sep 8. Back on Dec 11, Wing Tai Holdings announced that its wholly owned subsidiary, Wincrown had entered a contract of sale with Citi Power to acquire 11-27 Tavistock Place, Melbourne, Victoria, for a total consideration of A$28 million with the consideration arrived at on a willing-buyer and willing-seller basis, and the acquisition completed that day.

 

PROPERTY group Wing Tai Holdings said its wholly-owned subsidiary, Wincrown, has acquired a property in Melbourne, Australia, for A$28 million (S$24.7 million).

 

The property &ndash 11-27 Tavistock Place, Melbourne, Victoria 3000 &ndash is a substation site located in the Melbourne central business district.

 

In a bourse filing on Monday (Dec 11), the company said it entered into a contract of sale with Australian energy supplier CitiPower to purchase the property, and the acquisition was completed on Dec 11.

 

According to a LinkedIn post on Oct 19 by Daniel Wolman, international director and co-head of investment sales at Cushman & Wakefield, the property was sold to a major offshore investor that week.

 

Wing Tai said the acquisition was carried out in the ordinary course of business and is not expected to have a material impact on its net asset value per share.

Wing Tai : W05 -0.76% chairman and managing director Cheng Wai Keung continued to add to his deemed interest in the company, as his spouse Helen Chow acquired more shares.

 

His deemed interest in the real estate developer increased by 50,000 shares through two transactions, on Nov 24 and Nov 27.

 

This marginally increased his stake to 61.37 per cent, from 61.36 per cent.

 

Filings on SGX did not disclose the consideration for the purchases.

 

The transactions follow a steady pattern of share acquisitions by Cheng&rsquo s wife since Sep 8. Before that date, Cheng&rsquo s deemed interest was 60.2 per cent.

 

From Sep 8 through Dec 1, the stock has fallen from S$1.3406 to S$1.30. Its counter is down 12.1 per cent year to date, from S$1.4786.

 

Cheng was appointed to the board of Wing Tai in 1973. The company, which was listed in 1989, has core businesses in property investment and development and lifestyle retail.

 

It owns and manages a portfolio of quality real estate developments in Singapore, Malaysia, China, Japan, Australia and Hong Kong.

 

Its retail business represents global brands such as Adidas and G2000 in Singapore, as well as Mango and Furla in Malaysia.

 

It also has a joint venture with Japan&rsquo s Fast Retailing to operate Uniqlo stores in Singapore and Malaysia.

 

For its FY2023 ended Jun 30, the group recorded total revenue of S$476.3 million.

 

This was a 7 per cent decrease from FY22, attributable mainly to a lower contribution from development properties.

 

Net profit fell 91 per cent to S$13.3 million, from S$140.2 million, mostly due to its operations in Hong Kong.

 

Wing Tai had flagged, at the start of August, that it would report a &ldquo significant decrease in net profit&rdquo for FY23. Its shares promptly began to slide, falling from S$1.40 on Aug 4, before the guidance was given, to S$1.31 on Aug 21.

 

In the past, active share buybacks by Cheng and his family have fuelled rumours that Wing Tai would be privatised.

 

In 2012, the Cheng family, then a major shareholder, made a successful partial offer at S$1.39 per share to bring its stake above 50 per cent.

 

Cheng said then that the offer was not to delist the company, but to boost the family&rsquo s shareholdings and gain statutory control of the company.

 

Cheng is raising his stake at a significant discount. Wing Tai&rsquo s net asset value per ordinary share as at Jun 30, 2023, was S$4.13.

OVER the five trading sessions from Nov 24 to Nov 30, the Straits Times Index shed 1.2 per cent. 

 

There were 53 filings for changes in director interests and substantial shareholdings in that period, from 33 primary-listed stocks, as well as 98 filings for share buybacks by 30 companies.

 

Raffles Medical Group

Private healthcare player Raffles Medical Group : BSL +2.94% has continued its share buyback spree, taking advantage of a fall in its share price following its recent earnings announcement.

 

Over the five trading sessions, Raffles Medical purchased 1.9 million shares on the market over four transactions. The price paid per share ranged from S$1.04 to S$1.06.

 

The healthcare company has been buying back shares since Nov 7, scooping up 4.8 million shares so far. This accounts for 0.2581 per cent of all shares issued by the company, excluding treasury shares.

 

Raffles Medical began its latest round of buybacks a day after it posted a third quarter net profit of S$12.4 million, down 67.4 per cent from S$38 million in the corresponding year-earlier period.

 

The weak results had been attributed to a discontinuation of Covid-19 activities, while cost inflation also eroded the group&rsquo s margin.

 

Following the announcement, Raffles Medical&rsquo s share price dipped 10.8 per cent to close on Nov 6 at S$1.07, from S$1.20 the day before.

 

The stock has continued to fall, ending Friday (Dec 1) at S$1.05. The counter has fallen 22.9 per cent year to date, from S$1.3625.

 

Founded in 1976, Raffles Medical operates medical facilities and hospitals in Singapore, China, Japan, Vietnam and Cambodia.

 

It also has an insurance business as well as a dental arm.

 

During the Covid-19 pandemic, it had made up for the lack of medical tourists by offering Covid-related services such as polymerase chain reaction (PCR) tests and vaccinations.

 

It continues to helm transitional care facilities that were set up during the pandemic, aiding public hospitals with managing bed demands.

 

Healthcare stocks enjoyed a boost from the pandemic, but have fallen out of favour with post-Covid normalisation.

 

Raffles Medical&rsquo s share price, now far short of its pandemic highs, may yet be boosted by the current share buyback scheme.

 

A report by the Singapore Exchange (SGX) Research noted that the company in 2022 spent more than S$24.3 million acquiring 20.9 million shares on the market for an average price of S$1.17.

 

Its last transaction then occurred on Jun 28, 2022, when it bought 700,000 shares on the market between S$1.12 and S$1.13.

 

A 57.3 per cent rise in earnings for the nine months ended Sep 30, 2022 spurred a share price recovery that peaked at S$1.52 this year on Feb 9.

 

The company is also on the hunt for growth, as it looks for suitable targets to acquire in key markets.

 

Its most recent acquisition was in October this year, as it picked up a majority stake in American International Hospital in Ho Chi Minh City, Vietnam, for US$45.6 million.

 

The company said at the time that the deal would enable Raffles Medical to augment its clinic operations in the city, while meeting the growing demand for private healthcare services in Vietnam.

 

It would also enable the group to further diversify its hospital operations beyond Singapore and China, as part of its long-term strategy.

Wing Tai Holdings : W05 0% chairman and managing director Cheng Wai Keung has continued to build his deemed interest in the company, through his spouse Helen Chow acquiring shares.

 

From Nov 17 through to Nov 22, Cheng has increased his deemed interest in the leading real estate developer and lifestyle retailer by 80,000 shares.

 

He maintains a 61.36 per cent total interest in the company. This has increased from 60.92 per cent, prior to Chow&rsquo s recent sequence of acquisitions which began on Sep 8.

 

On Nov 17, Wing Tai shared its 59th AGM minutes held on Oct 23 on the SGX online corporate announcement page.

 

During the AGM, its executive director Tan Hwee Bin updated that The M at Middle Road had obtained its Temporary Occupation Permit on Aug 23, 2023 with a balance of five units remaining unsold out of the total 522 units.

 

Tan added that for the 306 leasehold residential units at The LakeGarden Residences (LakeGarden), close to 25 per cent were sold during phase one of the launch, and the company plans to release the remaining units of the development progressively and launch the units at the appropriate times.

 

In its sixth annual sustainability report released in October, Wing Tai noted that LakeGarden will push the boundaries of sustainable living with low-energy homes and solar panels to harness renewable energy. LakeGarden is Wing Tai&rsquo s first sustainable development and has attained the highest standards of BCA Green Mark certification &ndash Green Mark Platinum Super Low Energy (SLE).

 

This accomplishment aligns with the Singapore government&rsquo s direction towards reducing carbon emissions in the built environment sector.

 

The M at Middle Road has also successfully attained BCA Green Mark Gold Plus certification and is a Green Mark Gold Plus development which integrates smart home and eco-friendly features to support home buyers in their sustainability journey.

 

Wing Tai Holdings added that its investment property &ndash Winsland House I and Winsland House II &ndash in Singapore are also Green Mark Gold Plus certified.

 

At the AGM, when asked about Wing Tai Holdings&rsquo plan on its land bank in Singapore going forward, Cheng relayed that the company&rsquo s development strategy has always been prudent, and management expects the property market to slow down.

 

He added that as Singapore has stayed quite strong in terms of property development, the company will be cautious on the rate of returns when bidding for new sites and it will continue to look out for available opportunities in the country.

 

Cheng also noted that the company is also working on re-development of property in Australia.

 

INSTITUTIONS were net sellers of Singapore stocks over the five trading sessions through to Nov 23, with S$226 million of net institutional outflow, as 28 primary-listed companies conducted buybacks with a total consideration of S$10.4 million.

 

Singtel : Z74 -0.88% bought back 1,975,405 shares at an average price of S$2.34 per share on Nov 17. The buyback was to satisfy obligations under awards of shares pursuant to the Singtel Performance Share Plan 2012. The Hour Glass : AGS +0.61% bought back 838,000 shares at an average price of S$1.61 per share between Nov 22 and 23. This brings the total number of shares bought back on its current mandate to 2.9 million shares, or 0.44 per cent of The Hour Glass&rsquo issued shares excluding treasury shares as at the date of the share buyback resolution.

 

ESR-Logos Funds Management bought back units in ESR-Logos Rei : J91U 0%t and Digital Core Reit Management also bought back units of Digital Core Reit : DCRU -2.48%.

 

Leading the net institutional outflow over the five sessions were DBS : D05 -0.44%, Singtel, Seatrium : S51 -0.92%, OCBC : O39 -0.86%, Yangzijiang Shipbuilding (Holdings) : BS6 -1.34%, UOB : U11 -0.29%, CapitaLand Integrated Commercial Trust : C38U 0%, Mapletree Logistics Trust : M44U -0.62%, CapitaLand Investment : 9CI -0.64% and City Developments : C09 0%.

 

Meanwhile, Sats : S58 -1.09%, Keppel Corporation : BN4 -0.62%, Venture Corporation : V03 +0.08%, CapitaLand Ascendas Reit : A17U +0.35%, Mapletree Industrial Trust : ME8U +0.43%, iFAST Corporation : AIY -1.39%, AEM Holdings : AWX -1.45%, Singapore Airlines : C6L -0.16%, Frasers Logistics & Commercial Trust : BUOU +0.91%, and Thai Beverage : Y92 -0.93% led the net institutional inflows.

 

The five trading sessions saw more than 70 changes to director interests and substantial shareholdings filed for more than 30 primary-listed stocks. Directors or CEOs filed eight acquisitions and three disposals while substantial shareholders filed five acquisitions and six disposals.

Wing Tai Holdings : W05 +0.75% chairman and managing director Cheng Wai Keung has continued to build his deemed interest in the company, through his spouse Helen Chow acquiring shares. From Nov 10 through to Nov 16, Cheng has increased his deemed interest in the leading real estate developer and lifestyle retailer by 95,000 shares.

 

He maintains a 61.35 per cent total interest in the company. This has increased from 60.92 per cent, prior to Chow&rsquo s recent sequence of acquisitions that began on Sep 8. Cheng was appointed to the board of Wing Tai Holdings in 1973, and as managing director, the former chairman continues to play a pivotal role in the growth and success of the group&rsquo s business.

Wing Tai Holdings : W05 -2.24% chairman and managing director Cheng Wai Keung has continued to build his deemed interest in the company, through his spouse Helen Chow acquiring shares. From Nov 3 through to Nov 8, Cheng has increased his deemed interest in the leading real estate developer and lifestyle retailer by 115,000 shares. Cheng maintains a 61.34 per cent total interest in the company. This has increased from 60.92 per cent, prior to Chow&rsquo s recent sequence of acquisitions beginning Sep 8. Appointed to the board of Wing Tai Holdings in 1973, Cheng plays a pivotal role in the growth and success of the group&rsquo s business.