WCT Holdings 2Q profit slips 4% on weaker property and construction revenue

WCT Holdings Bhd posted a 4% year-on-year drop in net profit to RM14.71 million for the second quarter ended June 30, 2026, as revenue fell 33% to RM370.32 million. The decline was driven by lower contributions from its property development and engineering and construction segments.

PETALING JAYA (Aug 26): WCT Holdings Bhd’s profit attributable to ordinary shareholders fell 4% year on year to RM14.71 million for the second quarter ended June 30, 2026 (2QFY2026), as weaker property development and engineering and construction contributions weighed on revenue.

Quarterly revenue declined 33% to RM370.32 million from RM552.78 million a year earlier, while profit before tax fell 24.6% to RM21.71 million from RM28.80 million, according to the group’s unaudited filing with Bursa Malaysia on Wednesday (Aug 26). Basic earnings per share eased to 0.94 sen from 0.98 sen. No dividend was declared for the quarter.

WCT attributed the lower revenue mainly to its property development and engineering and construction segments, whose contributions fell by RM115 million and RM55 million, respectively, from a year earlier. The decline in property development revenue reflected lower property sales, including the absence of RM28 million in land sales recognised in the corresponding quarter last year. Engineering and construction revenue was lower as projects completed in the preceding year made no further contribution.

Engineering and construction remained the group’s largest revenue contributor during the quarter at RM192 million, or 52% of consolidated revenue. Property development contributed RM128 million, or about 35%, while property investment and management and food and beverage contributed RM50 million, or about 13%.

Compared with the immediately preceding quarter, revenue fell from RM445.32 million. Profit attributable to ordinary shareholders, however, rose from RM4.58 million in 1QFY2026. WCT attributed the sequential improvement mainly to a lower distribution to holders of its perpetual sukuk, which fell to RM1.56 million in 2QFY2026 from RM14.21 million in the preceding quarter.

For the first half ended June 30, 2026 (1HFY2026), profit attributable to ordinary shareholders declined 29.3% to RM19.29 million from RM27.28 million a year earlier, while revenue fell 20.4% to RM815.64 million from RM1.02 billion. The engineering and construction segment recorded an operating loss of RM10.68 million for 1HFY2026, compared with an operating profit of RM9.20 million a year earlier, as revenue fell to RM438.57 million from RM472.54 million. Property development revenue fell to RM280.11 million from RM416.73 million, while operating profit declined to RM45.62 million from RM75.83 million.

On its outlook, WCT said the engineering and construction industry remained challenging, though it was hopeful for the rollout of sizeable projects in Malaysia in the near future. Property development demand was expected to remain broadly stable, supported by Malaysia’s macroeconomic conditions and household consumption.