Tuan Sing

Tuan Sing: 3Q14 net profit swelled 3x y/y to $17.5m, while revenue jumped 84% to $99.8m, bringing 9M14 net profit to $36.8 (+38%), and revenue to $242.7 (+2%). For 9M14, the revenue increase was from the progressive revenue recognition for units sold at Seletar Park Residence and Sennett Residence and the initial 20% recognition on new bookings at Cluny Park Residence. For the same period, gross margin improved 1.7ppt to 18.4%. Net gearing of the company stood at 0.8x. Order book stood at $750.3m, where Seletar Park Residence, Sennett Residence and Cluny Park Residence will contribute towars the bulk of 4Q14 and FY15. Meanwhile, the redevelopment of Robinson Tower site is ongoing. When completed in 2017, it will comprise 28-storey commercial building with high-ceiling office space and a retail podium. This will add to the recurring income streams of its Investment segment, aside from GHG and Robinson Point. Tuan Sing will be acquiring the balance of 50% interest of GHG from its JV, at a discounted price to net book value of A$126m. The property outlook in Singapore and China is expected to remain tepid in the near term, on the back of ongoing cooling measures. BVPS at 66.4¢ translates to 0.6x P/B