Tuan Sing reports rise in Q1 profit despite slump in revenue

TUAN Sing Group's first quarter revenue for 2014 fell 6 per cent to $61.3 million, compared with $64.9 million in the same period last year.

This is a result of fall in revenue from its industrial services due to lower commodity trading activities.

Despite poor performance in its industrial services sales, the group's property division did well due to units sold at its Seletar Park Residence, Senett Residence, as well as new bookings for its new Cluny Park Residence that was launched in March this year.

It expects more revenue from these projects to come in by 2015.

Rental from Robinson Point is also one reason for its property division's growth in revenue. Its property division showed a 49 per cent growth in revenue at $30.4 million for the first quarter of this year, compared with $20.4 million in the same period last year.

Property accounted for 71 per cent of the group's net profit, which rose to $7.8 million from $6.5 million in the first quarter of 2013.

Earnings per share rose to 0.7 cent, up from 0.5 cent previously.

Net asset value also increased slightly, from 64.8 cents as of March 31, compared to 63.9 cents at Dec 31.

Besides its property division, Tuan Sing's hotels investment division also saw increase in revenue by 2 per cent from its Grand Hyatt Melbourne and Hyatt Regency Perth investments.

Other investments such as GulTech also did well, with a 12 per cent rise in revenue.

However, there were losses in profit for GulTech due to loss on foreign exchange as well as loss on exchange rate hedging.

The group said that while property cooling measures in Singapore and China has affected the market, it will still continue its property development business and continue investments, in the region as well as locally.