Tuan Sing net profit more than doubles in Q2

SINGAPORE - Tuan Sing Holdings has reported a 91 per cent surge in net profit to S$22.3 million in the second quarter, driven by progressive revenue collection from three projects under construction and rental income from investment properties.

Revenue in the three months to June 30 jumped 138 per to S$194.1 million, due mainly to the scheduled recognition of units sold at Seletar Park Residence, Sennett Residence in Potong Pasir and Cluny Park Residence in Bukit Timah.

Tuan Sing said on Thursday that it was "not significantly affected by the anaemic residential property market" as its three projects are about 97 per cent, 92 per cent and 42 per cent sold respectively.

A bulk of the group's revenue and profit this year will continue to come from these projects as construction progresses, Tuan Sing said.

Total order book stood at S$771.7 million at the end of June, of which S$551.4 million orabout 71 per cent has been recognised.

Earnings per share for the quarter stood at 1.9 cents, up from 1.0 cent the previous year. Net asset value per share rose to 70.5 cents as at 30 June 2015, from 68.3 cents in the same period last year.

First half net profit was up 98 per cent at S$38.2 million, while revenue was up 145 per cent from a year ago at S$349.4 million.

Property revenue in the first half rose 197 per cent to S$220.6 million while pre-tax profit before fair value adjustments climbed 124 per cent to S$36.6 million.

Revenue from hotel arm Grand Hotel Group which owns two five-star hotels in Australia rose 2 per cent in the first half to A$67.2 million.

Tuan Sing also has properties in China, where it said that it is reviewing its strategy as activity has "remained subdued".

Tuan Sing also holds stakes in printed circuit board manufacturer Gul Technologies Singapore and golf products retailer Pan-West, which it is not averse to divesting when opportunities arise, it said.

marilee@sph.com.sg