http://www.straitstimes.com/Money/St...ry_794237.html

Tuan Sing posts $6.8m Q1 net profit

Published on May 1, 2012


An artist's impression of Mont Timah, located at the foot of Bukit Timah Hill.Revenue from Tuan Sing's property business rose to $27.8 million. -- PHOTO: TUAN SING HOLDINGS

By Magdalen Ng


DEVELOPER Tuan Sing Holdings posted a first-quarter net profit of $6.8 million, up 23 per cent over the same period a year earlier.

For the three months up to March 31, Tuan Sing's revenue was $72 million, up 17 per cent from last year, on the back of broad-based growth across the company's businesses and investments.

Revenue from the property business, which has a focus on prime residential, commercial and industrial properties in Singapore and China, rose to $27.8 million. More units were sold in the Botanika and Mont Timah developments.

However, distribution costs for the quarter were up 405 per cent to $4.1 million, mainly due to showflat and marketing expenses for the 276-unit Seletar Park Residences launched at the end of March.

Profit after tax from the property business was $3.8 million, accounting for 45 per cent of the group's total profit after tax for the quarter.

Tuan Sing also holds a 50 per cent interest in GHG which owns Grand Hyatt Melbourne and Hyatt Regency Perth.

GHG reported a 14 per cent increase in revenue to A$32.4 million (S$42.2 million). GHG's net property income was up 24 per cent to A$110 million. Net profit from hotel investments for the quarter was $800,000.

The board of directors is optimistic about the company's outlook as 40 per cent of options for the 99-year leasehold Seletar Park Residences have been issued to buyers.

Sales at its other developments, such as Mont Timah located at the foot of Bukit Timah Hill, are also expected to continue at a steady pace.

There are also two other development projects in the pipeline, including The Sennett, which is next to Potong Pasir MRT station. It will be launched in the third quarter of this year.

The other project is located opposite Botanic Gardens MRT station, and will be launched in the last quarter.

Sales for the developer's remaining units in Shanghai are expected to moderate as property cooling measures in China continue to affect demand.

Earnings per share were 0.6 cent for the quarter, up from 0.5 cent the year before. Net asset value per share was 53.1 cents at March 31, up from 52.7 cents three months earlier.

Tuan Sing shares closed 0.5 cent higher at 29 cents yesterday.