SINGAPORE (Apr 27): Property firm Tuan Sing Holdings reported 1Q18 earnings of $8.2 million, up 53% from its restated earnings of $5.3 million a year ago, largely due to a one-off investment gain on divestment of a subsidiary.
Earnings per share grew to 0.7 cent from 0.4 cent in 1Q17, translating to a net asset value (NAV) per share of 83.6 cents as at end-Mar from 83.4 cents a year ago.
Revenue for the quarter grew 2% to $76.5 million from $74.8 million previously, mainly attributable to higher revenue recorded in the industrial services segment, which saw higher activities from commodities trading despite the absence of activities from the discontinued tyre distribution.
Property revenue however fell 12% to $17.2 million due to few remaining units in Sennett Residence and Cluny Park Residence and Kandis Residence not yet officially launched.
In the hotels investment segment, revenue fell marginally to $29.2 million from $29.6 million a year ago despite higher RevPAR and occupancy rates across Grand Hyatt Melbourne and Hyatt Regency Perth.
Under other investments, GulTech reported a 19% higher net profit of $9.6 million, which translated into an increase in the group’s share of net profit of $4.1 million compared to $3.6 million in 1Q17.
A one-off gain of $3.9 million was recorded on the divestment of a subsidiary in China.
Administrative expenses grew 9% to $6.2 million from $5.7 million a year ago, mainly because of higher manpower costs and additional legal fee provision relating to the termination of the previous main contractor for Seletar Park Residence.
Looking forward, Tuan Sing says it has sold most of its completed units and will now focus on two new projects, namely: Kandis Residence and Remaja project as well as the repositioning of the property at 896 Dunearn Road.
The group adds that the completion of 18 Robinson before end-2018 will enable it to realise a material developer’s profit, while rental of the new building will also provide a steady stream of recurring income thereafter.
Shares in Tuan Sing closed 1.2% higher at 43 cents on Friday.
