Tuan Sing posts S$6.6m H1 profit, lifted by property income, fair-value gain

PROPERTY developer Tuan Sing Holdings posted a S$6.6 million net profit for the half-year ended June, reversing its S$500,000 loss from a year ago. While the company's revenue was hit by weakness in the hotels and industrial segments, its bottomline was lifted by a S$3.2 million fair-value gain.

Its revenue for the period fell 39 per cent year on year to S$91.9 million, due mainly to lower revenue from the hotel-investment segment by S$28.8 million and industrial-services segment by S$37.4 million. The industrial-services segment was hit by Covid-19, causing disruptions to sales and logistics for commodities trading. 

However, this was offset by a fair-value gain of S$3.2 million, compared to loss of $200,000 a year ago, due to the revaluation of a China property that was reclassified as an investment property after being leased out.

Excluding the one-off fair-value gain, Tuan Sing recorded a profit before tax and fair-value adjustments of S$3.8 million, up 5 per cent from a year ago.

Tuan Sing also recorded a S$7.5 million increase in property revenue, as tenants of its flagship property, 18 Robinson, began to move in. Sales at Kandis Residence in Sembawang and Mont Botanik Residence off Hillview Avenue also came in "above expectations", the company said.

The company's other income rose by S$4.2 million due to government grants: the JobKeeper Payment in Australia of S$2.8 million, as well as property tax rebates of S$1.0 million and the Jobs Support Scheme in Singapore.

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Tuan Sing expects the Covid-19 pandemic to temporarily slow down its hotels-investment segment. Its Australian assets, the Grand Hyatt Melbourne and Hyatt Regency Perth, have seen a decline in occupancy due to travel restrictions. Tuan Sing is working with the Hyatt management to rationalise its hotel operations.

However, it will continue to develop its asset portfolio, and explore potential partnerships in Singapore and the region. The company has cash of S$187 million as of end-June.

"While the pandemic has resulted in practical difficulties in evaluating new expansion opportunities, we remain committed to growing our portfolio and footprint in key regional markets such as China and Indonesia. At the same time, we will also continue to practice vigilance in managing our costs in this challenging period," said chief executive William Liem.

Shares of Tuan Sing closed at S$0.275 on Thursday, down 1.79 per cent, before the release of the results.