SINGAPORE (Oct 26): Tuan Sing, the property developer and investor and hotel owner, reported earnings for 3Q17 ended Sept fell 9% to $5.9 million, or 0.5 cent per share, from 3Q16.
Revenue rose 12% to $101 million in 3Q17 due mainly to higher contribution from property and industrial services segments. But cost of sales widened 22% to $84.1 million. This resulted in a 20% drop in 3Q17 gross profit to $16.9 million.
For the 9M17, earnings fell 38% to $13.1 million due to overall decrease in sales of residential development projects.
Revenue for 9M17 fell by 14% to $259.9 million due mainly to lower sales of the residential development projects compared to the same period last year.
For hotel investment, revenue in 9M17 was A$83.5 million ($87.6 million) compared to A$87.2 million last year. Industrial services reported higher revenue of $98.7 million compared to $88.2 million last year of $88.2 million mainly due to higher activities from commodities trading.
As for other investments, GulTech reported 9M17 revenue of US$215.9 million compared to US$174.5 million last year due to improved performance from all its three plants.
Tuan Sing says the group will now focus on two new projects namely Kandis Residence and Remaja land as well as the repositioning of the property at 896 Dunearn Road.
The construction of 18 Robinson has also been progressing well and is expected to be completed before the end 2018 when it will provide a steady stream of income to the group.
Given the optimistic outlook of the property market, the management has decided to review its marketing and pricing strategy.
In its guidance, Tuan Sing says it will be profitable for the year 2017.
Shares in Tuan Sing closed at 44 cents on Thursday.
