ASSIGNMENT COVER SHEET

This cover page must be attached to the front of your assignment.

Please complete all details clearly.

Course code and title: BTBE2043 Accounting and Financial Management

Programme: RBD Y2S3

Names (list in alphabetical order): Reg. IDs:

22WVR05934
1. CHONG WEI JUN
22WVR05935
2. CHOO ZHEN HAO
22WVR05938
3. DARREN SIOW YUEN
22WVR05941
4. LEONG KARL JON
22WVR08080
5. LIM HONG YAO

Group email: chongwj-wv20@student.tarc.edu.my Group contact no.: +60 14-337 0298

Tutorial group: RBD2 G2

Tutor: Mr Ng Kean Wai

Assignment no.: GROUP ASSIGNMENT Due date: 21 APRIL 2023

Word count:

Date received from student: 21 APRIL 2023 Received by: Mr Ng Kean Wai
 Evaluation Rubric
Group Written Report
Category Unacceptable=1 Poor=2 Fair = 3 Good = 4 Excellent =5 Weightage Score

Structure and Minimal effort Lacking Layout that is Good use of Excellent
presentation, appropriate fairly readable headings, headings/sub
language, headings/subhe with appropriate layout is clear, - headings,
reference of adi ngs, poor pagination, good layout,
sources paragraphing, some spelling pagination, pagination.
many spelling and some use of Excellent
and grammatical table/graphs to grammar, X2 /10
grammatical errors, lacking illustrate trends. spelling.
errors, lacking logical flow in Good reference Effective/accura
logical flow in some parts, of sources. te
many parts. effective use use of figures
tables/graphs to and tables.
illustrate main Excellent
points. references of
sources.
Industry Not done or Poor effort in Fair level of Good level of Relevant, up-to-
analysis minimal researching appropriate relevant date and well-
effort. the industry, information, information, researched,
some some outdated current and outstanding X2 /10
irrelevant or or errors, appropriate. level of detail.
outdated somewhat
info. incomplete.
Financial ratio Not done or Multiple errors Fairly accurate Accurate Accurate
analysis minimal in calculations calculation of calculation of calculations of
effort. showing lack of relevant ratios, relevant ratios the latest
understanding, fair description for 5 years, financial data
fails to evaluate of trends, good analyses over 5 years,
company by lacking of ratios and comparison X12 /60
comparing with comparison trends, with industry
relevant with industry comparison data, well-
industry data, data or with industry reasoned
no reasoned competitors. data or analyses.
analysis of Contains some competitors. Excellent
financial data. errors or analysis of
omissions. trends.
Analyses of Not done or Cannot relate Can relate Is able to Can separate
cash flows minimal financial general determine each category
effort. activity to cash information changes in cash on all of the
flows. from the flows from the financial
financial main sectors of statements and X4 /20
statement to financial accurately
cash flows. statements. predict future
changes based
on strategic
changes.

Total /100

Assessor’s comments:

1
 Group Member Appraisal Form Group Member Appraisal Form

The basis of this evaluation is your group members’ commitment to completing the The basis of this evaluation is your group members’ commitment to completing the
assignment and their regard for other members of the group. It should be based on the assignment and their regard for other members of the group. It should be based on the
contribution given by each member and his/her involvement in this assignment. contribution given by each member and his/her involvement in this assignment.

Group members should be appraised on the following basis: Group members should be appraised on the following basis:

100 • Group member attended all group meetings or if unable to attend,
% contacted the group in advance and came to an alternative arrangement
that the majority of group members were happy with.
• Group member contributed to group discussion.
• Group member always offered to help or volunteered for tasks.
• Group member had assigned tasks completed on time.
100 • Group member attended all group meetings or if unable to attend,
% contacted the group in advance and came to an alternative arrangement
that the majority of group members were happy with.
• Group member contributed to group discussion.
• Group member always offered to help or volunteered for tasks.
• Group member had assigned tasks completed on time.

50% • Group member missed group meetings without making alternative
arrangements with other group members.
• Group member assigned tasks were only partly completed or poorly
completed.
• Group member did not contribute to the group effort or volunteer for tasks.
50% • Group member missed group meetings without making alternative
arrangements with other group members.
• Group member assigned tasks were only partly completed or poorly
completed.
• Group member did not contribute to the group effort or volunteer for tasks.

0% • Group member attended few meetings and made no contribution to the 0% • Group member attended few meetings and made no contribution to the
assignment. assignment.

Name of student: CHONG WEI JUN Name of student: CHONG WEI JUN
Tutorial group: RBD G2 Tutorial group: RBD G2
Instructions: Instructions:
Write the name of each of the members in your group in the space provided below. Write the name of each of the members in your group in the space provided below.
Appraise each of the members in your group by circling ONLY ONE of the totals shown Appraise each of the members in your group by circling ONLY ONE of the totals shown
below. below.
Group members Assessment Group members Assessment
1. CHOO ZHEN HAO 100% 50% 0% 1. CHOO ZHEN HAO 100% 50% 0%

2. DARREN SIOW YUEN 100% 50% 0% 2. DARREN SIOW YUEN 100% 50% 0%

3. LEONG KARL JON 100% 50% 0% 3. LEONG KARL JON 100% 50% 0%

4. LIM HONG YAO 100% 50% 0% 4. LIM HONG YAO 100% 50% 0%
Note: Failure to submit a Group Member Appraisal Form will result in zero appraisals Note: Failure to submit a Group Member Appraisal Form will result in zero appraisals
being recorded against your name. being recorded against your name.

2
 COURSEWORK
DECLARATION

Semester: 2022/23 Semester 3

Course Code & Title: BTBE2043 Accounting and Financial Management

DECLARATION
I/We confirm that I/we have read and shall comply with all the terms and condition
of Tunku Abdul Rahman University of Management and Technology’s plagiarism
policy.

I/We declare that this assignment is free from all forms of plagiarism and for all
intents and purposes is my/our own properly derived work.

I/We further confirm that the same work, where appropriate, has been verified by
anti-plagiarism software Turnitin.

No. Name Reg. ID Signature Date

1.
CHONG WEI JUN 22WVR05934
Eugene 12 March
2023

2.
CHOO ZHEN HAO 22WVR05935
ChooZH 12 March
2023

3.
DARREN SIOW YUEN 22WVR05938
Darren 12 March
2023
LEONG KARL JON 22WVR05941 12 March
4. 2023

LIM HONG YAO 22WVR08080 12 March

5. 2023

3
Table of Contents
Table of Contents 1
1. Background Information 2
1.1 Shareholders 3
1.2 Key Management Personnel 4
2. Principal Activities of WCT Sdn Bhd 6
3. Current state of the main industry 7
3.1 Current Market Size of Major Industries 7
3.2 Prospect of Future Growth of Major Industries 10
3.3 Challenges Facing the Major Industries 13
4. Analysis of WCT Holding Berhad’s financial condition (FY2021) 15
❖ Current ratio (liquidity ratio) 15
❖ Quick ratio 16
❖ Inventory turnover 17
❖ Average collection period 18
❖ Total asset turnover 19
❖ Gearing ratio (capital structure ratio) 21
❖ Times interest earned 22
❖ Gross profit margin 23
❖ Operating profit margin 24
❖ Net profit margin 25
❖ Return on total assets (ROA) 26
❖ Return on common equity 27
❖ Earnings per share (EPS) shareholder ratios 28
❖ Price/Earnings (P/E) Ratio 29
❖ Dividend yield 30
Conclusion 31
References 32
1. Background Information
WCT Group was founded on 14 January 1981 with the incorporation of WCT Earthworks &
Building Contractor Sdn Bhd. On February 16, 1995, WCTB made its public debut on the Second Board
of the former Kuala Lumpur Stock Exchange, now known as Bursa Malaysia Securities Berhad. On
January 7, 1999, WCTB was elevated to the main market of Bursa Securities. The group's various
business activities could now be covered by the newly transferred listing status of WCT Holdings Berhad
after WCTB successfully underwent an internal reorganisation on July 8, 2013.

The engineering and construction section of WCT Bhd has expertise in Formula 1 racing circuits, Mass
Rapid Transit (MRT), airports, dam and water supply schemes, expressways, highways, etc. It also
specialised in complex building projects such as shopping complexes, hospitals and government
administrative centres.

The group's property development portfolio includes townships, luxury homes, high-rise residences,
integrated commercial developments, office towers, hotels and shopping malls. WCT Group currently has
a land bank of approximately 816 acres in Malaysia.

The Company began practising sustainable building practices in recent years, and as a result, its projects
have won numerous green building rating awards, including the LEED Silver Certification under LEED
2009 for Core and Shell for the airport mall (gateway@klia2), Green Building Index (GBI) Gold for the
Ministry of International Trade & Industry (MITI) Headquarters; GBI Silver for Lot 2C5, Putrajaya
(Commercial Office Building) and GBI Certified for the MyTOWN Shopping Centre.

Investment holding company WCT Holdings Berhad also offers management services to its joint venture
businesses and subsidiaries. Engineering and construction, property development, and property
investment and management are the company's three main business divisions. From starting off as an
earthworks company with one machine in 1981, WCT Group has expanded to its current size, scope, and
strength and, in the process, transformed into a worldwide brand known for its capacity to provide
top-notch quality. Over the years, the business has grown into one of Malaysia's top property developers
and engineering and construction firms. (WCT Holding Berhad, 2022)

The Investment Holding, Engineering and Construction section carries out engineering tasks with a focus
on earthmoving, road building, and associated infrastructure projects. The property development segment
is engaged in the development of residential and commercial properties. The property investment and
management segment is engaged in holding and management of assets for capital appreciation and rental
income. (MarketScreener, 2023)
 1.1 Shareholders
Table 1: Name of WCT’s Shareholder and their equities
Name Equities (RM)

Dominion Nexus Sdn. Bhd. 257,220,078

Siew Choon Lim 105,142,753

Tan Vanguard Group, Inc. 27,928,481

SSA Funds Management, Inc. 16,229,626

Chin Liong Goh 14,948,005

Dimensional Fund Advisors LP 14,442,128

WCT Holding Berhad 14,026,085

Eastspring Investment Bhd. 7,000,000

TA Investment Management Bhd. 4,917,300

Permodalan Nasional Bhd. 4,265,574

(MarketScreener, 2023)
 1.2 Key Management Personnel
Table 2: WCT’s key personnel and their roles and experiences
Name Roles Experiences

Tan Sri Lim Siew Choon Executive ● He has over 39 years of experience in
property development, construction, retail
Chairman
design and development, and corporate
management.
● He is the chairman or director of several
companies listed on Bursa Malaysia
Securities Berhad, including Malton Berhad
and Pavilion Real Estate Investment Trust.
● He is a major shareholder of the Company
through his direct and indirect holdings.

Dato’ Lee Tuck Fook Group Managing ● Dato’ Lee Tuck Fook is the Group Managing
Director of the Company and a qualified
Director
accountant with a MBA degree.
● He has over 47 years of experience in various
fields, including auditing, timber,
construction, cement, and property
development.
● He has held senior positions in several
companies, such as KPMG, Samling Group,
Renong Berhad Group, Cement Industries of
Malaysia Bhd, Paracorp Berhad, and Malton
Berhad.
● He is currently a director of Pavilion REIT
Management Sdn Bhd, Pavilion REIT Bond
Capital Berhad, Pesona Metro Holdings
Berhad, and several private companies.
● He chairs the Management Committee and is
a member of the Options Committee of the
Company.

Chow Ying Choon Deputy ● Mr Chow Ying Choon is a board member of

Managing the Company since 2020.
Director ● He was also the managing director of a
property development and construction
company.
● He is part of the Management Committee and
Options Committee of the Company.

Tan Sri Marzuki Bin Independent ● a board member of the Company since 2016.
Mohd Noor Non-Executive ● He was the Ambassador of Malaysia to
Director several countries.
● He was also a director in DRBHicom Berhad
 Group.
● He is the chairman of the Audit Committee
and the Senior Independent Non-Executive
Director of the Company.

Datuk Ab Wahab Bin Independent ● Datuk Ab Wahab Bin Khalil is a board

Khalil Non-Executive member of the Company since 2016.
Director ● He was the General Manager of PERNAMA
and an Adjunct Professor at UiTM.
● He chairs the Nomination & Remuneration
Committee and is a member of the Audit
Committee and Board Risk and Sustainability
Committee of the Company.

Dato’ Ng Sooi Lin Independent ● Dato’ Ng Sooi Lin has been a board member
Non-Executive of the Company since 2017.
Director ● He was the Executive Director and Chief
Executive Officer of Berjaya Land Berhad
until 2016.
● He chairs the Board Risk and Sustainability
Committee and is a member of the Audit
Committee and Nomination & Remuneration
Committee of the Company.

Ng Soon Lai @ Ng Siek Independent ● Mr Ng Soon Lai @ Ng Siek Chuan is a board

Chuan Non-Executive member of the Company since 2017
Director ● He was the Chief Executive Director of
Alliance Bank Malaysia Berhad and Alliance
Merchant Bank Berhad until 2005.
● He is also an Independent Non-Executive
Director of Tune Protect Group Berhad and
ELK-Desa Resources Berhad and a director
of China Construction Bank (Malaysia)
Berhad.
● He is the chairman of the Options Committee
and a member of the Audit Committee of the
Company.

Rahana Binti Abdul Independent

Rashid Non-Executive ● Puan Rahana Binti Abdul Rashid is a board
Director member of the Company since 2019.
● She has a long career in corporate finance and
investment banking. She was also the Chief
Financial Officer of ORO Financecorp Ltd in
Cambodia and the Director of Finance of Tass
Tech (Malaysia) Sdn Bhd.
● She is a member of the Audit Committee and
Board Risk and Sustainability Committee of
the Company.
2. Principal Activities of WCT Sdn Bhd

Over the past four decades, WCT Group has continued to inspire and strive for excellence in its areas of
expertise. From having been involved in the construction of a wide range of iconic buildings and notable
infrastructures in the local and global arena since its inception in 1981, the group has subsequently
diversified its portfolio to include property development, investment in and management of retail malls,
commercial offices and hotels as well as the niche private aviation business. (Linkedin, 2023)

WCT Berhad
Engineering and Construction Division – the principal activities of the division are engineering works
specialising in earthworks, construction of expressways and highways, buildings, related infrastructure
works and provision of management services. (Linkedin, 2023)

WCT Land
Property Development and Investment & Management Division - the division is mainly engaged in the
development of residential properties, integrated townships and commercial properties. It is also engaged
in the ownership and management of shopping malls, office buildings, hotels and concession assets.
(Linkedin, 2023)
3. Current state of the main industry

3.1 Current Market Size of Major Industries

Current Market Size

Engineering and The current 2023 global heavy and civil engineering construction market is
Construction estimated to be $1936.17 billion at a compound annual growth rate (CAGR)
of 5.2%

Figure 1: Current global Engineering and Construction Industry

Market size

Asia-Pacific was the largest region in the heavy and civil engineering
construction market in 2022. North America was the second-largest in the
heavy and civil engineering construction market.
Property The global real estate market size was valued at USD 3.69 trillion in 2021.
Development The market is expected to grow at a healthy pace during the forecast period,
owing to the rising population and a desire for personal household space.

Residential property dominated the market with a revenue share of 35.5% in

2021. The growth is majorly driven by the millennials as they are more
inclined toward homeownership in recent years. For instance, according to
Apartment List’s Homeownership report, the homeownership rate among
millennials has increased to 47.9% in 2021 from 40% in 2020.

Commercial property is projected to register a CAGR of 5.1% from 2022 to

2030. The market is booming at an exceptional pace as a result of the
growth of the tourism sector. Moreover, the growing number of hotels and
resorts is expected to drive the demand for bathroom furniture. According to
TOPHOTELPROJECTS GmbH, in 2020, Citadines Apart’ Hotels was the
most active hotel brand in Thailand with five projects consisting of 945
rooms. (Grand View Research, 2020)

Property Investment The global real estate investment market was valued at $11444.7 billion in
and Development 2021, and is projected to reach $30575.5 billion by 2031, growing at a
CAGR of 10.7% from 2022 to 2031.

Figure 2: Sales segment constituted largest share in the real estate

investment market in 2021.

By purpose, the sales segment accounted for the highest share in real estate
investment market size. This is attributed to the number of transactions of
purchase and sales is growing. In addition, rise in demand for various
properties such as residential, commercial, and industrial is driving the
growth of the market. Moreover, government initiatives to open up real
estate sector for foreign direct investment has boosted the market growth.
(Kanhaiya K, n.d.)
 3.2 Prospect of Future Growth of Major Industries

Prospect of Future Growth

Engineering The heavy and civil engineering construction market is expected to grow to
and $3246.44 billion in 2031 at a CAGR of 6.4%. (future). (Research and Markets,
Construction
2022)

Figure 3: Forecast growth of CAGR from 2021 to 2031 in percentage.

(Research and Markets, 2022)

Generally, rising government initiatives, urbanisation, infrastructure development,

industrialization, and population growth will all contribute to market expansion in
the future. (Research and Markets, 2022) However, heavy and civil engineering
construction will expand mostly through technological advancement during the
forecast period. Markets that use technology, like those in the foundation,
structure, and building exterior contractors, benefited from this development.
Smart highways, 3D concrete printing, drone surveying, kinetic roads, "tiny
houses," and solar roads are examples of areas experiencing rapid technological
change. The demand for better infrastructure will rise as a result of technological
advancement, which will have a positive effect on the demand for heavy and civil
engineering construction. (Hayford, 2019)
Property The global real estate market size is expected to expand at a compound annual
Development growth rate (CAGR) of 5.2% from 2022 to 2030. The market is expected to grow
at a healthy pace during the forecast period, owing to the rising population and a
desire for personal household space. (Grand View Research, 2020)

Figure 4:US Real Estate Market Size from 2020 to 2030. (Grand View Research,
2020)

In 2021, Asia Pacific held the majority of the market, with a share of 52.6%. The
region's rising homeownership rates are mostly responsible for the growth.
According to estimates, China holds the majority of the market share in the
region—more than 64.8%. It is further predicted that the growing number of
tourists in developing nations like India, the Philippines, Indonesia, Thailand, and
Vietnam will promote market expansion in the area. (Grand View Research, 2020)

From 2022 to 2030, Middle East & Africa is anticipated to see a CAGR of 6.3%.
The increase is mostly related to the country's expanding residential and
commercial project pipeline. For instance, the Middle East Construction Pipeline
Trend Report estimates that there will be 545 hotel projects totaling 168,042
rooms in the third quarter of 2021. Moreover, in July 2021, Durrat Marina signed
an agreement with Tamcoon for the development of 18 residential villas in
Bahrain. (Kanhaiya K, n.d.) (Grand View Research, 2020)

Property The global real estate investment market is projected to reach $30575.5 billion by
Investment and 2031, growing at a CAGR of 10.7% from 2022 to 2031.
Development
The real estate investment market share is expected to continue growing at the
highest CAGR throughout the forecast period in Asia-Pacific. This is explained
by the fact that Asia-Pacific is experiencing economic growth and that more
infrastructure development projects are driving up real estate prices in this region.
Additionally, the expansion of the construction sector's demand and the recovery
of the economy are both major factors. (Kanhaiya K, n.d.)
 3.3 Challenges Facing the Major Industries

Challenges Facing the Industry

Engineering and Poor Productivity

Construction Construction projects can be poor in productivity due to various reasons such as
late or insufficient supply shipments, construction vehicles breaking down,
frequent inclement weather, design complications arising midway during
construction, friction between the different stakeholders (e.g., owner and
contractor), and others (Hayford, 2019)

Rising Cost of Materials

The cost of construction materials is rising due to tariffs, trade conflicts, inflation,
or rising global demand. The long-term macro (all materials combined) cost trend
is up, but the short-term micro (individual materials) trend is unpredictable.
(Hayford, 2019)

Shortage of Skilled Labour

Demand for jobs is increasing as a result of the surge in new construction
demand. However, it is uncertain whether there is enough labour to sustain
growth. Mechanical, electrical, and plumbing engineers, civil engineers,
architects, skilled trades, HVAC technicians, and plumbing are just a few of the
professions where there is a labour shortage. A business that lacks strong talent
will struggle to compete with stronger rivals. (Hayford, 2019)

Property Misreading the Real Estate Market

Development Developers should pursue projects driven by current market needs—not by
hoping to create a need. (Scott, 2022)

Choosing the Wrong Site

An ideal location that matches the developer's target market and key
demographics is the starting point of every successful real estate development
project. Developers must seek out the best real estate options since making the
right choice in real estate may make or break a project. (Scott, 2022)
 Cost Overruns
Real estate development can be highly lucrative, but profits can quickly erode
due to cost overruns. From fluctuating labour and material costs to unexpected
snags and change orders, budgets can be blown. The developer takes on all the
risk of cost overruns, and the best way to avoid them is to over-budget in the first
place by adding a buffer of 10% to 20%. It's also a good idea to add an extra 10%
or 15% to each project stage to account for inevitable delays. (Scott, 2022)

Property Rise in demand for industrial and commercial development

Investment and Rapid urbanisation has resulted from a rapid increase in migration and the world
Development
population. This factor is expected to increase demand for real estate
investments. Additionally, the market growth in developed regions is anticipated
to be driven by the increase in demand for commercial buildings. (Kanhaiya K,
n.d.)

Increase in public–private partnerships (PPP)

A joint venture between the government and businesses in the private sector for
the development of public infrastructure systems is known as a public-private
partnership. In this kind of partnership, the government provides technical and
operational support while a private company manages the project. Therefore,
growth in public–private partnerships in different countries, such as India and
China, would continue to fuel the growth of the real estate investment industry.
(Kanhaiya K, n.d.)

Rise of residential construction industry

Globally, the residential construction sector has been impacted by rapid
urbanisation. Due to the concentration of urban population growth in emerging
economies, where residential infrastructure is developing at a rapid rate, the real
estate investment market is even more important. (Kanhaiya K, n.d.)
4. Analysis of WCT Holding Berhad’s financial condition (FY2021)

❖ Current ratio (liquidity ratio)

Table 4: Calculation and the bar chart of current ratio for WCT holding 2017 to 2021

In the year of 2018, WCT has the highest current ratio with 1.48 while lowest in 2021 with 1.16.
This means that for every dollar of current liabilities, the company has RM1.48 of current assets
in 2018, while RM1.16 in 2021. The lower or nearer the current assets to current liabilities the
chances of covering the liability is lower. This being said, WCT in all 5 years are safe from
covering the current liabilities.
 ❖ Quick ratio
Table 5: Calculation and the bar chart of quick ratio for WCT holding 2017 to 2021

Across the 5 year span, in the year of 2018, WCT has the highest ability/ratio to pay all its
current liabilities immediately with 1.25, while the lowest in 2021. The higher the ratio result,
the better a company's liquidity and financial health; the lower the ratio, the more likely the
company will struggle with paying debts. With a quick ratio over 1.0, WCT in all 5 years appears
to be in a decent position to cover its current liabilities as the current assets are greater than the
total of its short-term obligations. However, in 2021 WCT is on the edge of having trouble to
cover its current liabilities as the ratio stands at 1.01.
 ❖ Inventory turnover
Table 6: Calculation and the bar chart of inventory turnover for WCT holding 2017 to 2021

WCT holding accounts the highest number of times, on average, the inventory is sold during the
year of 2017 with 5.38 times while fluctuates in the next 4 year. The higher the number, meaning
the more efficient the company uses its assets as it help businesses make better decisions on
pricing, manufacturing, marketing, and purchasing. A relatively low inventory turnover ratio
may be a sign of weak sales or excess inventory, while a higher ratio signals strong sales but may
also indicate inadequate inventory stocking.
 ❖ Average collection period
Table 7: Calculation and the bar chart of average collection period for WCT holding in 2017 to
2021

In 2021, the average collection period is the longest, which is 163.30 days while the shortest in
2017. This indicates that the receivables are collected on average every 163.30 days in 2021, the
money collected from the customers are the slowest among the 5 years meaning the effectiveness
of the firm's AR management practices in that year is the worst.
 ❖ Total asset turnover
Table 8: Calculation and the bar chart of total asset turnover for WCT holding in 2017 to 2021

In the past 5 years, WCT's best year in generating sales by using its assets efficiently was in
2018, while the lowest in both 2020 and 2021.
 ❖ Debt ratio
Table 9: Calculation and the bar chart of debt ratio for WCT holdings in 2017 to 2021

The debt ratio seems to increase till 2018 and drop steadily after. WCT had the highest debt ratio
in 2018 with 63% while the lowest in 2021 with 51%. A debt ratio of greater than 1.0 or 100%
means a company has more debt than assets while a debt ratio of less than 100% indicates that a
company has more assets than debt. Since the ratio of the past 5 years isn't more than 100% it
means the company is still financing more assets with equity than debt and a greater portion of a
company's assets is funded by equity.
 ❖ Gearing ratio (capital structure ratio)
Table 10: Calculation and the bar chart of gearing ratio for WCT holding in 2017 to 2022

The gearing ratio seems to fluctuate steadily around 39% to 43% across the 5 year span, where in
2021 accounts the highest percentage of 43%, while both 2019 and 2020 shared the spot for the
lowest. This indicates that in 2021, WCT holding is more geared and riskier with a higher degree
of financial leverage and is more susceptible to downturns in the economy and the business
cycle, while in 2019 and 2020 is less geared and less riskier in terms of ratio of debt to total long
term finance because they have more equity to rely on for financing.
 ❖ Times interest earned
Table 11: Calculation and the bar chart of time invest earned for WCT holding in 2017 to 2021

In 2020, WCT holding appeared to have difficulty servicing its debt as the time interest earned is
the least among the 5 years, while being the highest in 2017. Higher interest coverage ratio
indicates ease in paying interest expense (debt) to continue to invest in the business and also the
company's relative freedom from the constraints of debt.
 ❖ Gross profit margin
Table 12: Calculation and the bar chart of Gross Profit Margin for WCT holding 2017 to 2021

Across the 5 year span, in the year of 2019, WCT Bhd has the highest gross profit margin of
24.33% while the lowest is 7.06% which falls in the year 2021. The higher the gross profit
margin, the more money the company has to cover operating cost, financing, etc. In such, WCT
berhad has a better sales and production performance in 2019.
 ❖ Operating profit margin
Table 13: Calculation and the bar chart of Operating Profit Margin for WCT holding 2017 to
2021

In the year 2021, WCT Sdn Bhd has achieved the highest operating profit margin which is
25.32%. Meaning that, WCT Sdn Bhd will earn 25.32% for every Ringgit Malaysia after paying
for the variable cost of production(wages, raw material).
 ❖ Net profit margin
Table 14: Calculation and the bar chart of Net Profit Margin for WCT holding 2017 to 2021

In 2020, WCT Bhd has the highest net profit margin which is 10.54%. A higher net profit margin
indicates that WCT Bhd has better cost control in 2020. Whereas in the year 2019, WCT Bhd has
a worst net profit margin which is only 1.87%. In such, WCT Bhd has the highest revenue/profit
left after deducting all the expenses from the total sales.
 ❖ Return on total assets (ROA)
Table 15: Calculation and the bar chart of Return On Total Assets (ROA) for WCT holding 2017
to 2021

In the year 2021, WCT Berhad has the highest ratio of ROA which is 7.44%. This means that the
company uses its assets more efficiently to generate the earnings. The earning that the company
generates is before deducting the interest and taxes. Normally, a company with low ROA has
more assets in generating the profit while a company with high ROA has fewer assets.
 ❖ Return on common equity
Table 16: Calculation and the bar chart of Return on Common Equity(ROCE) for WCT holding
2017 to 2021

In the year 2021, WCT Berhad has the highest ratio of ROCE which is 6.24%. As compared to
the previous year which is 2020, the company did not perform well in generating net income for
their common shareholders. The higher the ROCE, the higher the return for every ringgit
invested by the common shareholders.
 ❖ Earnings per share (EPS) shareholder ratios
Table 17: Calculation and the bar chart of Earning Per Share(EPS) Ratio for WCT holding 2017
to 2021

In 2017, WCT Berhad had the highest EPS which is RM0.18 per share. The higher the earnings
of the company, the EPS will increase and it makes the company more valuable.
 ❖ Price/Earnings (P/E) Ratio

Table 18: Calculation and the bar chart of Price/Earnings Ratio for WCT holding 2017 to 2021

In 2017, WCT Berhad had a 12.70 P/E ratio. The P/E ratio for the company continue rise to
30.57 times in 2018. However, starting from the year 2019, the P/E ratio drops to negative value
until 2020 due to covid-19 pandemic. In 2021, WCT Berhad made a recovery and achieved the
highest P/E Ratio which is 30.58 times. This means that the company’s stock is overvalued or
that the investors for WCT Berhad are expecting a high growth rate in the future.
 ❖ Dividend yield
Table 19: Calculation and the bar chart of dividend yield for WCT holdings from 2017 to
2021

In 2018, WCT Berhad had the highest pay out in the dividends which is 971.43% relative to its
company stock price. The company pays the shareholders that own a share of the company stock
after dividing by its stock price. Higher dividend yield does not mean the company has
investment opportunities because the dividend yield of the stock has a chance of elevated as a
result of the stock price.
Conclusion

In conclusion, businesses around the world operated in the COVID-19 endemic transition phase
amid market uncertainties and evolving macroeconomic conditions. WCT Group’s core
businesses of Engineering and Construction, Property Development, and Property Investment
and Management Divisions were not spared from the lingering effects of the COVID-19
pandemic globally, which directly impacted the demand and delivery of the Group’s products
and services caused by local and foreign labour shortages, supply chain disruptions, and increase
in cost of operations stemming from global inflation.

In 2021, the Group’s Engineering and Construction Division successfully secured approximately
RM1.48 billion worth of new contracts despite the competitive landscape and challenging market
conditions. While the COVID-19 pandemic continued to cause large-scale disruptions to
business operations, the Division remained focused on areas such as efficient procurement,
supply chain management and project execution which led the Division to achieve practical
completion for two of its projects namely Lusail Development Project in Doha, Qatar and MRT2
V204 & S204.

The property development sector was also largely impacted by the pandemic due to closure of
sales galleries during the prolonged lockdown, in which property launches, property sales and
purchase processes, including loan processing were halted. The Group’s Property Development
Division maintained its resilience by strengthening its digital presence and adopting
multi-channel online channels. Customers were engaged through social platforms, virtual
property expo and a digital, contactless and 3D virtual home buying experience via WCT Virtual
Gallery in January 2021 which successfully garnered approximately 40,000 visits in the same
year itself. The digital marketing initiatives contributed to approximately 70% of the Group’s
property sales.
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