Tuan Sing

Tuan Sing: Co. reported weak 4Q11 results which was in-line. Rev of $71.7m, +16% yoy and +52.6% qoq, while net profit at $25.2m, -34% yoy and +390.4% qoq. Result brings FY11 Rev to $239.7m, -30% yoy and net profit to $40.3m, -54% qoq. Lower rev mainly due to lower contribution from China Ppty & a change in accounting policy on property rev recognition.

Grp’s ppty segment rev at $40.5m, -75% yoy, as a series of cooling measures by the Chinese govt affected sales in China. SG had higher rev reflecting the sales proceeds from Botanika and Mont Timah and higher rental income from investment properties. Overall, Ppty segment reported a profit after tax of $25.6m, including a net fair value gain of $18.6m and remained the major contributor to Grp’s profit.

Grand Hotel Grp reported an 8% increase in NPI to A$40.1m as both Grand Hyatt Melbourne and Hyatt Regency Perth reported a 12% increase in RevPAR, while Industrial Services generated rev of $199.8m mainly led by SP Corp, whose rev +10% yoy to $187.0m, driven by commodities trading and tyre sales.

Going forward, grp expects a better performance for 2012, nothing that the 276-unit Seletar Park Residence is expected to be launched by 1Q12, while the Cluny Park project is expected to be launched by 3Q12. In Aus, the total refurbishment programs for both hotels in Melbourne and Perth were completed.

Overall, net gearing is a ted high at 0.7x, although valuations are undemanding at 0.55x P/B.