Tiong Seng

Tiong Seng: 1Q14 net profit crashed 85% y/y to $1.6m despite a 16% gain in revenue to $170m, mainly due to the absence of a disposal gain of investment properties, further exacerbated by increased selling expenses on China development projects and higher staff costs on the tight labour market and additional headcount. Revenue growth came from an increase in work done for Waterway Terraces I & II, The Archipelago, The Luxurie, SIM HQ campus extension, Haus, Springside, Equinix and Eco Sanctuary. The group recently commenced operations for its precast plant in Iskandar, Malaysia, in Apr and the JV with Myanmar’s construction giant, Shwe Taung, is expected to kick off in 3Q14. Order book at $1.17b. NAV/share of 28.31¢.