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31-10-13, 11:50
http://www.straitstimes.com/premium/money/story/tuan-sings-third-quarter-earnings-drop-half-20131031
COMPANIES
Tuan Sing's third-quarter earnings drop by half
Published on Oct 31, 2013
By Dennis Chan Deputy Money Editor
DEVELOPER Tuan Sing Holdings' third-quarter net profit has more than halved to $5.8 million from $12 million in the same period last year.
Revenue for the three months to Sept 30 fell by 35 per cent to $54.2 million.
For the first nine months, net profit dropped by 12 per cent to $26.7 million on the back of a 9 per cent fall in revenue to $237 million.
During this period, property revenue decreased by 13 per cent to $110.2 million as Mont Timah had been fully sold.
For ongoing projects, new revenue stream from Sennett Residence - launched in March - formed the bulk of the revenue, followed by Seletar Park Residence and Cluny Park Residence, which has had a soft launch.
Investment properties revenue dropped 27 per cent to $6 million as rental income from Robinson Towers and International Factors Building ceased at end-May to cater for redevelopment.
On the whole, the property division contributed a net profit of $14.4 million, which accounted for 52 per cent of the group's total profit for the nine months ended Sept 30.
Net property income from its hotels investment dipped by 5 per cent to A$30.4 million (S$35.8 million) but net profit remained unchanged at A$6.8 million.
Meanwhile, the industrial services segment reported revenue of $127.5 million and net profit of $2.1 million.
Revenue from SP Corp declined 4 per cent to $120.5 million as a result of lower sales from tyre and auto trading offset partially by higher sales from commodity trading.
However, net profit doubled because of significantly lower loss from geotechnical and soil investigation businesses following the scaling down of its Singapore operations last year.
Tuan Sing also recorded a share of profit amounting to $11.1 million from its investment in Gul Technologies Singapore.
Quarterly earnings per share shrank to half a cent from one cent previously, while net asset value per share swelled to 62.4 cents compared with 60.9 cents as at Dec 31.
Looking ahead, Tuan Sing said the acquisition of Robinson Point, which was completed on Oct 1, is expected to bring in a steady flow of rental income to the group.
It will be devoting more resources to the redevelopment of the Robinson Towers site.
As for its residential projects, the group has sold more than 92 per cent of Seletar Park Residence and Sennett Residence combined. Cluny Park Residence, a high-end freehold project with only 52 units, was soft-launched recently. It has sold 12 units as at the end of last month.
With major construction works already being awarded, profitability for the three projects has been locked in, Tuan Sing noted.
Outside Singapore, it will continue to develop residential and other properties and expand its property portfolio in the region, in particular Indonesia.
[email protected]
COMPANIES
Tuan Sing's third-quarter earnings drop by half
Published on Oct 31, 2013
By Dennis Chan Deputy Money Editor
DEVELOPER Tuan Sing Holdings' third-quarter net profit has more than halved to $5.8 million from $12 million in the same period last year.
Revenue for the three months to Sept 30 fell by 35 per cent to $54.2 million.
For the first nine months, net profit dropped by 12 per cent to $26.7 million on the back of a 9 per cent fall in revenue to $237 million.
During this period, property revenue decreased by 13 per cent to $110.2 million as Mont Timah had been fully sold.
For ongoing projects, new revenue stream from Sennett Residence - launched in March - formed the bulk of the revenue, followed by Seletar Park Residence and Cluny Park Residence, which has had a soft launch.
Investment properties revenue dropped 27 per cent to $6 million as rental income from Robinson Towers and International Factors Building ceased at end-May to cater for redevelopment.
On the whole, the property division contributed a net profit of $14.4 million, which accounted for 52 per cent of the group's total profit for the nine months ended Sept 30.
Net property income from its hotels investment dipped by 5 per cent to A$30.4 million (S$35.8 million) but net profit remained unchanged at A$6.8 million.
Meanwhile, the industrial services segment reported revenue of $127.5 million and net profit of $2.1 million.
Revenue from SP Corp declined 4 per cent to $120.5 million as a result of lower sales from tyre and auto trading offset partially by higher sales from commodity trading.
However, net profit doubled because of significantly lower loss from geotechnical and soil investigation businesses following the scaling down of its Singapore operations last year.
Tuan Sing also recorded a share of profit amounting to $11.1 million from its investment in Gul Technologies Singapore.
Quarterly earnings per share shrank to half a cent from one cent previously, while net asset value per share swelled to 62.4 cents compared with 60.9 cents as at Dec 31.
Looking ahead, Tuan Sing said the acquisition of Robinson Point, which was completed on Oct 1, is expected to bring in a steady flow of rental income to the group.
It will be devoting more resources to the redevelopment of the Robinson Towers site.
As for its residential projects, the group has sold more than 92 per cent of Seletar Park Residence and Sennett Residence combined. Cluny Park Residence, a high-end freehold project with only 52 units, was soft-launched recently. It has sold 12 units as at the end of last month.
With major construction works already being awarded, profitability for the three projects has been locked in, Tuan Sing noted.
Outside Singapore, it will continue to develop residential and other properties and expand its property portfolio in the region, in particular Indonesia.
[email protected]