Tuan Sing H1 net profit soars to S$100.7m, from S$6.6m previously

TUAN Sing Holdings on Friday posted a net profit of S$100.7 million for its first half, 15.2 times that of the S$6.6 million posted the year prior, on the back of topline gains across all business segments.

Revenue in the six months ended June 30 jumped 57 per cent to S$143.9 million, thanks mainly to its real estate development and investment segments. This was spurred by higher progressive recognition of units sold at Mont Botanik Residence, higher occupancies at 18 Robinson and Link@896. There was also a rise in average gross rental for Link@896 due to the ongoing asset enhancement work and tenant optimisation.

The group's industrial services and hospitality segments also saw a bump in sales, which it said reflected the gradual recovery of operations since the outbreak of the Covid-19 pandemic last year.

Gross profit increased by 48 per cent to S$36.1 million in the first half, as a result of the increase in revenue.

Earnings per share for the six months stood at 8.5 Singapore cents, up from 0.6 cents the previous year. Net asset value per share rose to 105.2 cents as at June 30, from 97.7 cents in the same period last year.

Tuan Sing said it maintained a "disciplined focus" on financial management by strengthening its balance sheet, with cash and cash equivalents of S$250 million as at June 30, more than doubling from S$108.3 million a year earlier. Net gearing dropped to 0.79x as at June 30, from 1.01x at Dec 31, 2020.

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"The stronger financial position … provides the group with greater headroom to swiftly take advantage of any business opportunities to grow in a post-pandemic environment," it added.

William Liem, chief executive of Tuan Sing, said that the group will remain "unflinching" in its commitment to focus on its core property segment. He added that Tuan Sing will continue to seek opportunities as well as explore potential partnerships and collaborations to grow its portfolio of "well-located assets in tourism gateway cities".

It will also look to strengthen its commercial portfolio in the region. Mr Liem said: "At the same time, we will consider any opportunities to review our non-core real estate investments and businesses as and when they arise with the view to potential value maximisation."

Shares of Tuan Sing closed at S$0.545 on Friday, up two Singapore cents, or 3.8 per cent.