SINGAPORE (Oct 24): Tuan Sing Holdings, the property developer and investor, reported 3Q18 earnings ended Sept of $3.8 million, a decline of 35% from a year ago mainly due to the absence of a one-off liquidated damages of $2.9 million received in 3Q17 from a contractor for its delay in an investment development project.
For the 9M18 ended Sept, earnings came in at $14.9 million, up 16% from a year ago, mainly on the back of a $3.9 million gain from the divestment of a subsidiary in China and higher profits from GulTech, but partially offset by the absence of the liquidated damages.
Revenue for 3Q18 was $94.6 million down 6% from a year ago, mainly due to lower sales of residential development projects and lower contributions from the group’s hotels business but partially offset by higher revenue in the industrial services segment.
Gross profit for 3Q18 was $17.8 million compared to $16.8 million in the same quarter last year, an increase of $1.0 million. The increase was mainly due to higher gross profit margins from the property segment.
Other operating income was $1.1 million as compared to $3.8 million in the same quarter last year, a decrease of $2.8 million. The decrease was mainly due to the absence of the liquidated damages received. Distribution costs were $2.6 million as compared to $2.7 million in the same quarter last year.
Looking ahead, Tuan Sing says it has begun on a business transformation to reposition itself from a niche developer to a regional player with presence in various key international destinations focusing on integrated mixed use and tourism developments.
In Perth, Australia, planning approval has been granted for Hyatt Centre asset enhancement initiative and development of Lot 11, one of the two vacant plots, into an integrated hotel, commercial and retail hub.
In Batam, the group plans to launch the Batam Marina City’s initial phase of the integrated township development comprising condotels, retail outlets, food & beverage and entertainment spaces next year.
Year to date, shares in Tuan Sing are down almost 20% to 37 cents.
