Tranquility ResidencesContribution from the Tranquility Residences (artist's impression above) and Sunny International projects gave an extra boost to Tiong Seng's top and bottom line for 9MFY2016.

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.

9MFY2016 revenue from property development grew to S$116.3 million from S$14.0 million a year ago.

This was largely contributed by its China projects: 501 units (57,259 sqm) for phase I of its Tranquility Residences project and 30 units (3,313 sqm) for phases I, II, III, and IV of its Sunny International project.

PekLianGuan 4.2016

“When selecting projects, our priority is to pursue high yields, as well as exercise caution through diversification.”

- Pek Lian Guan
CEO,Tiong Seng Holdings
(NextInsight file photo)

Segment gross profit margin expanded by 6.5 percentage points to 7.4%.

The property development segment, which suffered a loss in 9MFY2015, showed a profit of S$4.6 million in 9MFY2016.

Revenue from construction grew by S$87.6 million to S$429.0 million, and remains the Group's main earnings driver, contributing 77.8% to 9MFY2016 revenue.

Revenue from property development contributed 21.1% while revenue from sales of goods and rental income accounted for the remaining 1.1%.

Stock price  21c
52-week range 20c-29.5c
Market cap S$95.6m
Price Earnings 7.0x
Price-Book 0.386x
Dividend yield 2.4%
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.

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