 The Equinox in Tianjin is one of the Group's mixed residential and commercial real estate development projects in China. Artist's Impression
TIONG SENG HOLDINGS looks set for a good year this year, which is likely to surpass the last three years ($9.3 m net profit, $15.3 m net loss, and $10.2 m net profit in 2013, 2014 and 2015, respectively).
For 1H2016, its net profit attributable to shareholders increased 76.0% to S$8.2 million.
Revenue rose 105.6% to S$405.2 million, driven by growth in its construction and property segments.
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“We shifted our focus to public sector projects and utilised our strengths in civil engineering. This allowed us to secure two contracts recently which lifted our order book to S$1.3 billion, one of the highest in the industry.”
– Pek Lian Guan
Tiong Seng CEO
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Construction contracts contributed 71.2% to Group revenue, increasing 54.9% year-on-year to S$288.4 million.
Work done for newly commenced projects that have yet to be recognized amounted to S$7.3 million as at 30 June.
Property development contributed 27.6% to Group revenue, increasing 1,769.8% year-on-year to S$111.6 million.
This was mainly from the sale of 490 units (55,331 sqm) of phase I from its Tranquility Residences project and 29 units (3,034 sqm) from phase II, III and IV of its Sunny International project.
Gross development value sold but yet to be recognized as revenue amounted to S$93.6 million as at 30 June. These projects include 82 units (19,577 sqm) of Equinox and 56 units (16,103 sqm) of Tranquility Residences.
Highlights of its 1HFY2016 results:
- Healthy cash reserves of S$79.3 million
- Positive net operating cash flow of S$99.8 million, reversing a net negative cash outflow of S$30.2 million in the previous period
- Loans and borrowings declined by S$89.3 million to S$209.5 million due to net repayment of loans
For more info, refer to its 1HFY2016 financial results here.
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