Tuan Sing Holdings has reported a 91 per cent surge in net profit to $22.3 million in the second quarter, driven by progressive revenue collection from three projects under construction and rental income from investment properties.
Revenue for the three months ended June 30 jumped 138 per cent to $194.1 million, owing mainly to the recognition of units sold at Seletar Park Residence, Sennett Residence in Potong Pasir and Cluny Park Residence in Bukit Timah. Tuan Sing said 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.
The bulk of the group's revenue and profit this year will continue to come from these projects as construction progresses, Tuan Sing said. The firm's total order book stood at $771.7 million, of which $551.4 million or about 71 per cent has been recognised.
Earnings per share for the quarter stood at 1.9 cents, up from one cent the previous year. Net asset value per share rose to 70.5 cents as at June 30, up from 68.3 cents as at Dec 31 last year.
First-half net profit jumped 96 per cent to $38.3 million, while revenue surged 145 per cent from a year earlier to $349.4 million.
AT A GLANCE
$194.1 million (+138%)
$22.3 million (+91%)
Property revenue in the first half rose 197 per cent to $220.6 million while pre-tax profit before fair-value adjustments climbed 124 per cent to $36.6 million.
Revenue from hotel arm, Grand Hotel Group, rose 2 per cent in the first half to A$67.2 million (S$67 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.
The results were announced after the market closed. Tuan Sing shares rose 0.5 cent or 1.45 per cent to 35 cents.