With the strong sale, profit recognition and progressive revenue on its property projects in Shanghai, Tuan Sing Holdings has announced that its net profit for the first quarter was $20.9 million, up from last year’s $724,000.
Its revenue has more than doubled from $29.6 million to $105.7 million. Net assets value per share also increased to 45.4 cents from 43.2 cents in December last year, while earnings per share rose to 1.8 cents from 0.1 cents last year.
 |
The company has a free cashflow of $258 million and cash of about $216 million in Q1, which was largely attributed to the proceeds from its Lakeside Ville Phase III in Shanghai and from the divestment proceeds of the Katong Mall collective sale.
Overall, Tuan Sing accounted for $60.1 million or 57 percent of the group revenue in the first quarter, compared to $5.8 million in the same period last year. The segment also has a contributed profit of $18.5 million after tax.
The company’s hotel investment segment is Grand Hotel Group (GHG), which owns the 5-star Hyatt Regency Perth and Grand Hyatt Melbourne in Australia.
In Q1, GHG announced a profit after tax of A$1.8 million or S$2.3 million, including an exceptional gain of A$0.7 million on interest hedging instruments. For the GHG investment holding unit level, its hotels recorded a profit after tax of $0.5 million.
Meanwhile, the company’s industrial services recorded revenue of $38.6 million and a profit after tax of $0.7 million, while its retail business, which comprises of sports equipment, generated $7.1 million of revenue and $0.6 million of profit after tax.
Tuan Sing said its 2010 outlook is optimistic, given the economic recovery is sustained.
“With net cash and relatively strong balance sheet, the group is in a good position to ride on the economic upturn,” it said. “The group will continue to broaden its earnings base, strengthen its growth platform and look for opportunities to enlarge our land bank for future property developments.”
One of the land sites includes the company’s prime property plot, where the Robinson Towers and International Factors Building at Market Street are located. Some property insiders said the site could be redeveloped into a super-prime office space.