Sale of Sennett Residence units drives up profits at Tuan Sing Holdings

DEVELOPER Tuan Sing Holdings has reported a 31 per cent rise in second quarter net profit to $15.2 million.

Revenue for the three months to June 30 was up 13 per cent at $117.9 million.

Earnings per share climbed to 1.3 cents from one cent previously while net asset value per share firmed to 61.8 cents compared to 60.9 cents as at Dec 31.

On a half year basis, net profit improved by 14 per cent to $20.9 million on the back of a 4 per cent rise in revenue to $182.8 million.

Tuan Sing's property division chalked up a 22.6 per cent rise in first half year revenue to $92.1 million, largely from the sale of Sennett Residence which was launched in March.

Revenue from investment properties slipped by 5 per cent as redevelopment for Robinson Towers and International Factors Building commenced in June.

On the whole, the division contributed an after tax profit of $12.6 million, accounting for 58 per cent of total group profit.

Tuan Sing's hotels investment and industrial services business contributed single digit rise in after tax profit.

Its Gultech investment did not perform as well. Gultech's after tax profit dipped by 2 per cent to US$23.7 million.

Tuan Sing's share of profit was $7.2 million.

Looking ahead, Tuan Sing said it will continue to focus on the property sector and expand its core property portfolio in the region.

It recently inked a deal to acquire the freehold Robinson Point building. The transaction is scheduled to be completed on Oct 1.

Meanwhile, the redevelopment of Robinson Towers is in progress and is expected to complete by 2016.

As at end June, Tuan Sing has sold more than 550 units at Seletar Park Residence and Sennett Residence.

It plans to launch the 52-unit freehold Cluny Park Residence in the third quarter.