Tuan Sing

Tuan Sing: Tuan Sing jumps 8.5% today despite limited company specific news flow, testing its 1½ year high of $0.39. We highlight that Tuan Sing which sits on Market Insight’s Value portfolio, had last registered a stellar 1Q14 set of results, with net profit rising 33% to $7.7m, despite revenue being down 6% to $61.3m, as bottom-line was led by a significant jump in gross margins to 16.8% from 2.9%, thanks to lower marketing costs, and absence of the previous year’s MTN program establishment costs. As at end Mar, Tuan Sing had sold 582 units at Seletar Park Residence, Sennett Residence and Cluny Park Residence with total order book of $745.6m. Revenue from these projects will be progressively recognized in tandem with the progress of their construction over this year and the next. The redevelopment of Robinson Tower into a 28-storey building with 1-level sky terrace, retail podium and 6-levels of fully automatic basement carpark is also ongoing, and the Group expects this investment property to be an avenue for growth for its recurring income when completed in 2017. While property cooling measures in Singapore and China had affected market sentiments, Tuan Sing guides that it will continue its property development business, acquire more investment properties and also explore opportunities in the region. Barring unforeseen circumstances, the group is optimistic of achieving satisfactory operational performance before fair value adjustments for the year 2014. Valuations are undemanding with Tuan Sing trading at just 0.59x P/B. The group will release its 2Q14 results on 30th Jul ’14 after market close.