Tuan Sing Holdings

[Curiousparty]

7.7 mil cash is very small relative to its outstanding share base.... the bigger issue is what is the real RNAV of Tuan Sing?
When will it ever "wake up" from its sleep?

[Curiousparty]

Does anyone happen to know whether Tuan Sing is bounded by its debt or bond covenants, resulting in it not being able to pay out a higher dividend , in spite of improved profitability for FY2014?

Tks.

[vesfreq]

Cp,

I did a search on this. Apparently, cant find. Seems like not a publicly available information. Perhaps, those attending agm should grill management regarding this. Unfortunately, i overlooked to sign up attend agm.

Spoke with some bankers. Dividend covenant is within the bank facility agreement. Referred to another co report and its not reflected on the ar. Perhaps, someone more insightful can share.

Vested at this moment.

[Curiousparty]

Hi Vesfreq

Would u happen to have worked out the RNAV of Tuan Sing?
many tks.

[cfa]

Indo management are more conservative in giving out big dividend but not so in their own remunerations and benefits.

[Curiousparty]

The Business Times Singapore, May 1, 2015 Friday

Tuan Sing Q1 net profit doubles to S$15.94m


Singapore

TUAN Sing Holdings' net earnings have doubled to S$15.94 million for the first quarter ended March 31, 2015, from S$7.71 million a year ago.

Revenue surged 153 per cent to S$155.3 million from S$61.3 million. The group attributed its improved performance to higher contribution from property and hotel investments.

Earnings per share doubled to 1.4 cents for the period under review. Net asset value per share stood at 70.2 cents as at end-March, up from 68.3 cents at end-December last year.

In the stock market, the counter closed unchanged at 40.5 cents on Thursday. Tuan Sing announced its results after market closed.

Net gearing improved to 1.28 times as at end-March from 1.34 times as at end-December.

The group said that progressive recognition of revenue based on percentage of construction on units sold at Seletar Park Residence, Sennett Residence, Cluny Park Residence and rental income from investment properties enabled property to continue to be the key driver of the group.

The sector accounted for 58 per cent of group revenue and 73 per cent of group profit after tax, Tuan Sing said.

Associate Gul Technologies Singapore's net profit fell 59 per cent to US$1.6 million, which translated into a lower share of profit for the group.

In Australia, revenue at Grand Hotel Group increased 5 per cent to A$34.9 million (S$36.5 million), as Grand Hyatt Melbourne and Hyatt Regency Perth reported higher revenue per available room in addition to a 3 per cent increase in net rental income over the same period last year.

Tuan Sing CEO William Liem told BT on Thursday that the group was in the midst of activating long-standing plans to tap unutilised gross floor area for the Perth property, which is on a freehold site with land area of nearly 278,000 square feet.

"In the first phase, we plan to spruce up the 367-room hotel and do a big revamp of the adjacent office and retail tower, repositioning it to attract high-end tenants. On the vacant part of the site, we are evaluating the possibility of building a serviced apartment tower.

"This will still leave us with vacant land to build up to two more towers in subsequent phases and this could be anything, including apartments for sale, additional hotel rooms, serviced residences, offices, retail."

Mr Liem said that it could take anything from one to three years to get all the approvals before any work begins for the first phase. "We will make an announcement once plans are finalised with board approval in place."

[Curiousparty]

Outlook (extract from Q1 2015 result)

In Singapore, the private residential market is expected to remain anaemic. The Group was less affected
as majority of its units at Seletar Park Residence, Sennett Residence and Cluny Park Residence had
been sold. Total order book secured was $767.5 million as at 31 March 2015, up from $763.2 million at
the previous year-end. The bulk of the Group’s revenue and profit in 2015 would continue to come
from these three residential projects, as construction progresses.

Robinson Point has been fully leased out to various tenants under leases ending in years 2017/18. The
redevelopment of the Robinson Tower site is on-going with piling expected to be completed in the
second half of the year. The proposed development on a 1,725 square metres site shall have a planned
gross floor area of 259,250 square feet and total lettable area of about 194,380 square feet. When
completed in 2017, it is expected to be a platform for future growth of the Group.

GHG is expected to perform satisfactorily in the remaining part of the year as a result of the Group’s
effort in driving the hotel profit and increasing the performance of carpark, office and shopping space
operations through proactive management initiatives.

Barring unforeseen circumstances, the Group is cautiously optimistic of achieving satisfactory
operational performance before fair value adjustments for the year 2015.

[Curiousparty]

2 of its 3 projects will TOP in 2015. Hence, gearing ratio should be adjusted downwards by quite a bit.

"Loans and borrowings, comprising interest-bearing liabilities net of capitalised finance costs, stood at
$1,282.1 million as at 31 March 2015 (31 December 2014: $1,344.9 million). The overall decrease
was due to repayment of part of project loans. Certain project loans are being reclassified to current
liabilities as two development projects are scheduled for TOP before the end of the year. Detailed
analysis of the Group’s borrowings is set out in Item 3."


Under current liability, the borrowing is $477mil. If this amt is pared down when the projects obtain TOP, does this mean that the gearing ratio will improve by around 37%???

[Curiousparty]

2015 results should be much better than 2014 results based on the following two observations:-

a. Full year recognition of hotel recurring income in 2015. This was already evident in Q1/2015 results. Hotel PAT (profit after tax) increased by 207%!!!
b. Property development income is also set to be higher than last year because of POC (% of completion) recognition from 3 running projects (instead of 2.5 projects last year). This was also reflected in Q1 results where property development PAT was 110% higher.


The concern on its high gearing ratio may be unjustified as its gearing ratio should decline substantially with the TOPing of 2 projects this year.

[Boon]

2015 results should be much better than 2014 results based on the following two observations:-

a. Full year recognition of hotel recurring income in 2015. This was already evident in Q1/2015 results. Hotel PAT (profit after tax) increased by 207%!!!
b. Property development income is also set to be higher than last year because of POC (% of completion) recognition from 3 running projects (instead of 2.5 projects last year). This was also reflected in Q1 results where property development PAT was 110% higher.


The concern on its high gearing ratio may be unjustified as its gearing ratio should decline substantially with the TOPing of 2 projects this year.

a is recurring but b is not
in absolute terms, b is a much bigger contributor than a
Agree - FY2015 and possibly FY2016 results likely to be better than FY2014.......but beyond that profit would likely drop with the completion of the 3 projects ..........