TUAN Sing Group’s second-quarter net profit fell 63 per cent to $3.5 million from $9.5 million a year ago. Revenue fell 17 per cent to $54.9 million from $66.1 million, due to lower revenue from its property, industrial services and retail business segments.
‘Operating conditions for the rest of the year are likely to remain challenging,’ the group said in its statement yesterday.
For the half year, net profit plunged 72 per cent to $4.3 million from $15.4 million, as revenue sank 36 per cent to $84.5 million.
Tuan Sing’s property segment posted a 96 per cent plunge in net profit to $0.6 million, as revenue fell 50 per cent to $18.9 million for the six months ended June 30. This was due to lower development property sales, and the group said that though rental income increased, the additional costs of $3.1 million due to the acquisition of Katong Mall weighed earnings down.
For its industrial services segment, net profit dropped 20 per cent to $1.2 million as revenue fell 24 per cent to $49.1 million. Its subsidiaries had posted lower commodity and tyre sales, and been hit by volatile raw material prices.
The retail segment recorded a loss of $2.8 million, compared to a net profit of $0.2 million in the first half of last year due to Pan West’s weak sales, closure of its Thai operations and slow-moving stocks at lower margins.
However, Tuan Sing’s investments in hotels, via a 50 per cent interest in GHG which owns Grand Hyatt Melbourne and Hyatt Regency Perth in Australia, yielded earnings of $3.2 million for the half year, versus a loss of $0.9 million the previous year.
The group’s total borrowings as at June 30 were $359.3 million, 16 per cent up from $310.6 million six months earlier. Additional borrowings had been used to fund its purchase of Katong Mall. Net gearing thus stood at 0.71 times on June 30, compared with 0.66 times on Dec 31.
After including other comprehensive income – mainly foreign currency translation gain – the group’s comprehensive income attributable to shareholders rose to $27.6 million for the first half of this year, compared with $17.6 million for the corresponding period last year. Net asset value per share thus rose to 38.6 cents as at June 30, from 36.2 cents as at Dec 31.
The stock closed unchanged at 18.5 cents a share yesterday.
Source : Business Times – 5 Aug 2009
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