TIONG SENG: More than doubles 1QFY2016 revenue to S$247 million

Thomson Line's tunnels are constructed by a joint venture between Tiong Seng and South Korean contractor, Dongah Geological Engineering. Photo: Sim Kih TIONG SENG HOLDINGS has more than doubled its 1QFY2016 revenue to S$247.2 million year-on-year (up 141.6%), lifted by increased contribution from both construction and property development segments. 1QFY2016 Revenue Contribution Construction Property development $152.0 m  61.5% $91.8 m  37.1% The Group's construction revenue increased 55.3% to S$152.0 million, outperforming the growth of 6.2% in the public and private sector. Revenue contribution from property development more than doubled to S$91.8 million, lifted by sales of 436 units its Tranquility Residences project in Suzhou. The Group's property development projects are mainly located in 2nd and 3rd tier PRC cities, where housing prices have been benefiting from government policies. The Group's order book was S$1.1 billion as at 10 May, for projects extending to 2020.

"We align ourselves with industry trends and regulatory initiatives that improve productivity levels in the built environment ecosystem. "Our investment in leading edge technology has strengthened our leading position in the industry. We differentiate ourselves by providing a more comprehensive suite of products and services." - Pek Lian Guan Tiong Seng CEO NextInsight file photo

The successful launch and sales of the Group's commercial and residential development projects in Suzhou significantly improved its operating cash flow to S$66.5 million as at 31 March 2016 from negative S$28.1 million a year ago.

Overall gearing level also improved.

In addition, the Group's construction progress on newly commenced projects which have yet to be recognised as revenue was worth about S$2.4 million as at 31 March 2016.

Development properties sold but not yet recognized was about S$99.9 million, including 63 units of Equinox (in Tianjin) and 99 units of Tranquility Residences.

In 1Q, Tiong Seng's net profit attributable to shareholders grew 17.6% to S$3.7 million despite a forex loss of S$2.2 million for the quarter (1Q2015 recorded forex gain of S$1.7 million).

On Monday, the Group celebrated the opening of its factory to manufacture precast tunnel segments, a joint venture with Geostr Corporation and Marubeni-Itochu Steel.

The facility is an example of the Group's product differentiation strategy that leverages on competitive advantages of joint venture partners who are leaders in developed markets.

A leader in Japan's precast tunnel segment market, Geostr Corporation brings Japanese process for tunnel segments onto the table while Japanese steel trader Marubeni-Itochu provides an extensive distribution network.

For more information, see press release.