Tiong Seng's revenue from the sale of development properties multiplied more than sevenfold in 9MFY2016 to S$116.3 million, outpacing the absolute contribution from its core construction segment.
Segment gross profit margin expanded by 6.5 percentage points to 7.4%.
|Source: SGX StockFacts|
The Group had about S$11.5 million worth of construction work done on newly commenced projects but this has yet to be recognized as revenue as at 30 Sept 2016.
Another S$102.4 million of gross development value was sold but yet to be recognized as at 30 Sept 2016.
This includes 95 units (20,830 sqm) from the Equinox project and another 54 units (16,620 sqm) from the Tranquility Residences project.
The Group had an order book of about S$1.2 billion as at 30 September 2016, to be fulfilled through 2020.
Its financial position remains robust with a positive operating cashflow of S$140.0 million during 9MFY2016.
This significantly improved its gearing ratio from 0.93 as at 31 December 2015 to 0.56 as at 30 September 2016.
For more information, refer to its 9MFY2016 financial statements here.