Tuan Sing

Tuan Sing: 1Q13 results. Revenue at $64.9m, -10% yoy, mainly due to lower devt property sales. Current quarter revenue was derived mainly from sales recognition for the last 2 units of Mont Timah and the initial 20% sales value units sold in Seletar Park Residence and a unit of Sennett Residence. Gross profit fell by 32% to $9.0. Net profit at $5.8m, -15% yoy. As at end Mar, the group has sold about 500 units at Seletar Park Residence and Sennett Residence. Revenue will be progressively recognized in tandem with progress of construction. Meanwhile the group plans to launch the 52 units freehold Cluny Park Residence in 2Q13. The group will be devoting more resources to the redevt of Robinson Towers. Construction is expected to commence in 3Q13. When completed in 2016, this will contribute to the group’s recurring property invmt income. Mgt is cautiously optimistic of achieving satisfactory operational performance before fair value adjustments for FY13. The stock trades at 0.6x P/B, 18.0x annualized 1Q13 P/E.