Tuan Sing trebles Q3 gain; looks to better full year

TUAN Sing Holdings, which posted a tripling in third-quarter net earnings, is optimistic about better operational performance for the year ended Dec 31, 2014 compared to FY2013, said its CEO William Liem.

The group expects to complete the acquisition of its remaining stake in Australia's Grand Hotel Group (GHG) in December. "With the completion, the group would have full ownership and control over GHG and accordingly full consolidation of its financial results," Tuan Sing said in its results statement on Thursday evening.

The group posted net profit of S$17.53 million for the third quarter ended Sept 30, compared with S$5.76 million in the same year-ago period. Revenue rose 84 per cent to S$99.84 million.

For the first nine months, group net profit improved 38 per cent to S$36.83 million. Revenue increased 2 per cent to S$242.71 million. The group said the revenue increase for both periods was driven by theproperty segment.

For the first nine months, property revenue increased 24 per cent to S$137.1 million, and profit after tax nearly doubled to S$28.1 million. The bulk of the revenue and profit were from progressive recognition on units sold at Seletar Park Residence, Sennett Residence as well as initial 20 per cent recognition on new bookings at Cluny Park Residence. Rental income from Robinson Point, an office block the group acquired in October 2013, lifted revenue from investment properties by 107 per cent to S$12.4 million.

"Property contributed 57 per cent of the group's total revenue and 76 per cent of the group's total profit after tax for the period," Tuan Sing said.

Earnings per share (including fair value adjustments) rose to 1.5 Singapore cents in Q3 FY2014 from 0.5 Singapore cent in Q3 FY2013.

Net asset value per share stood at 66.4 Singapore cents as at end-September 2014, ahead of 63.9 cents as at end-December 2013. Net gearing (net borrowings over total equity) eased to 0.8 time as at end-September 2014 from 0.84 time as at end-December 2013.

On the stock market, the counter ended unchanged at 42.5 Singapore cents on Thursday. The group announced its results after the close of trading.

Tuan Sing said that in Singapore it had secured a total order book of S$750.3 million on Seletar Park Residence, Sennett Residence and Cluny Park Residence as at end-September 2014. As construction progresses, the bulk of the group's revenue and profit for the current year and in 2015 would come from these three residential projects.

In the CBD, the redevelopment of the Robinson Tower site is on-going and upon its completion in 2017, the new Robinson Tower would be a platform for future growth of the group's investment property contributing steady recurring income, in addition to Robinson Point and GHG, Tuan Sing said.

PROPERTY LAUNCHES & INVESTMENTS

Property Launches & Investments

Tuan Sing trebles Q3 gain; looks to better full year

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