Strong showing from property division sees Tuan Sing double Q1 earnings

SINGAPORE - Developer Tuan Sing Holdings has reported a more than doubling of its net profit to $15.9 million from $7.7 million for the first quarter.

Revenue for the three months to March 31 surged by 153 per cent to $155.3 million, driven by strong performance from its property division.

Property revenue jumped by 195 per cent to $89.7 million while pretax profit before fair value adjustment increased by 110 per cent to $14.1 million.

Progressive recognition of revenue based on percentage of construction on units sold at Seletar Park Residence, Sennett Residence, Cluny Park Residence, and rental income from investment properties.

This enabled the property division to continue to be the key driver of the group, contributing 58 per cent and 73 per cent of group revenue and profit, respectively.

Hotel arm, Grand Hotel Group, saw its revenue increased 5 per cent to A$34.9 million, as Grand Hyatt Melbourne and Hyatt Regency Perth reported higher RevPar (revenue per available room) in addition to a 3 per cent increase in net rental income.

Interest cost decreased 25 per cent while depreciation charges by 6per cent.

As a result, GHG's net profit increased by 78 per cent to A$5.6 million.

On the other hand, industrial services reported lower revenue of $28.5 million, down from $31.1 million in the same period last year.

Meanwhile, GulTech reported a 9 per cent fall in revenue to US$59.9 million and a 36 per cent decline in after-tax profit to US$4.6 million, weighed down mainly by a squeeze in margin and start-up costs of its new Jiangsu plant.

Consequently, GulTech's net profit slumped by 59 per cent to US$1.6 million, which translated into a lower share of profit for the group.

Earnings per share soared to 1.4 cents from 0.7 cent previously while net asset value per share swelled to 70.2 cents compared to 68.3 cents as at Dec 31.

Looking ahead, Tuan Sing said it was less affected by the Government's cooling measures on the residential market as the majority of its units at its three development projects had been sold.

Total order book secured amounted to $767.5 million as at end-March.

The bulk of the group's revenue and profit this year will continue to come from these projects as construction progresses.

Office building Robinson Point has been fully leased out to various tenants under leases ending in years 2017/18 and the redevelopment of the Robinson Tower site is on-going, with piling expected to be completed in the second half of the year.

In Australia, GHG is expected to perform satisfactorily in the remaining part of the year as a result of the group's effort in driving the hotel profit and increasing the performance of carpark, office and shopping space operations through proactive management initiatives.

Barring unforeseen circumstances, Tuan Sing is cautiously optimistic of achieving satisfactory operational performance this year.