Revenue for 3Q18 was $94.6 million down 6% from a year ago, mainly due to lower sales of residential development projects and lower contributions from the group’s hotels business but partially offset by higher revenue in the industrial services segment.
Gross profit for 3Q18 was $17.8 million compared to $16.8 million in the same quarter last year, an increase of $1.0 million. The increase was mainly due to higher gross profit margins from the property segment.
Other operating income was $1.1 million as compared to $3.8 million in the same quarter last year, a decrease of $2.8 million. The decrease was mainly due to the absence of the liquidated damages received. Distribution costs were $2.6 million as compared to $2.7 million in the same quarter last year.
Looking ahead, Tuan Sing says it has begun on a business transformation to reposition itself from a niche developer to a regional player with presence in various key international destinations focusing on integrated mixed use and tourism developments.
In Perth, Australia, planning approval has been granted for Hyatt Centre asset enhancement initiative and development of Lot 11, one of the two vacant plots, into an integrated hotel, commercial and retail hub.
In Batam, the group plans to launch the Batam Marina City’s initial phase of the integrated township development comprising condotels, retail outlets, food & beverage and entertainment spaces next year.
Year to date, shares in Tuan Sing are down almost 20% to 37 cents.
