Wheelock shrugs off profit fall
Shares in Wheelock surged as much as 5.3 per cent yesterday despite an 88.3 per cent fall in profit to $64 million for the year ended March.
The stock closed 3.03 per cent higher at $6.80 after hitting a high of $6.95 at midday.
Analysts said Wheelock's improving financial position had fuelled interest from investors who were chasing laggard stocks.
BNP Paribas Peregrine head of regional property Adrian Ngan Wai-hung raised its recommendation on Wheelock to 'outperform' from 'market perform'.
He said the group's improving business fundamentals and the better earnings prospects after the latest property provisions had lured investors.
Wheelock's profit slide was due to substantial property provisions. The group made a $1.76 billion provision for property developments, mainly the loss-making Sorrento and Bellagio projects. An additional $662.8 million was provided for the deficits for its investment properties.
At the end of March, Wheelock's net debt amounted to $8.79 billion, down 33.2 per cent from $13.17 billion previously.
