Tiong Seng Holdings will be selling its asset at 6 Tuas South Street 11, Tiong Seng @ Tuas South, to an unrelated third party for a consideration of $10.5 million.

 

On June 18, the company granted an option to purchase the Tuas Property, which is a leasehold property granted by Jurong Town Council to TSC with a leasehold tenure of 20 years and six months from May 27, 2015.

 

The cost of acquisition of the Tuas Property by the Tiong Seng was $18,5 million, and the monthly gross rental payable by the group for the Tuas Property is $1.00. The Tuas Property is mortgaged in favour of Malayan Banking Berhad as security for credit facilities extended to the group, under which $1.02 million is outstanding as at Dec 31, 2024.

 

The purchaser is Maxwell Technology, a manufacturer of high-end photovoltaic equipment.

 

The group has rented the property out to its wholly-owned subsidiary Robin Village Development (RVD) as an office, storage, warehouse and the assembly of prefabricated bathroom units among other usages. RVD has since shifted a portion of its operations to Malaysia and no longer requires the usage of the Tuas property space.

 

Under the option, an option fee of 1% will be payable upon the grant of the option. Then, a sum of $1.05 million or 10% of the consideration shall be payable upon the exercise of the option by the purchaser, and the balance purchase consideration shall be payable upon completion of the disposal.

 

 

Construction group and property developer Tiong Seng Holdings reverses into earnings of $4.26 million for FY2024 ended Dec 31, 2024. However, for the 2HFY2024, the group made a loss of $87,000. 

 

Earnings per share for FY2024 came in at 0.65 cents per share. 

 

The group saw revenue for the full year growing 17% y-o-y to $526.6 million, but revenue for 2HFY2024 declined 8% y-o-y to $286.0 million. 

 

The group says that key factors driving the turnaround included resuming construction work post-Covid-19 pandemic, and implementing effective cost management measures.

 

For the 2HFY2024, the group&rsquo s revenue decreased due to a decline in revenue from the construction and engineering solutions segment. This was caused by the completion of certain existing projects and the lower revenue recognition for the initial phase of new projects secured in 2HFY2024. 

 

The group&rsquo s operating loss in 2HFY2024 of $0.1 million compared to a profit the year before was due to profits generated from the engineering solutions and the property development segments, partially offset by an operating loss in the construction segment.

 

The group&rsquo s revenue for the full year however increased due to increase in revenue from construction and engineering solutions. 

 

Revenue from the property development segment amounted to $9.4 million in FY2024 mainly

attributable from the sale recognition of two units from Tranquility Project and 10 units from Equinox Project. 

 

The group&rsquo s 2025 strategy focuses on sustainable growth through strategic partnerships and enhanced internal capabilities. It says that it has refined its project selection criteria to emphasise on quality and margins. 

 

As at Dec 31, 2024, the group&rsquo s order book stood at $0.60 billion, expected to extend until 2028.

 

The group has not proposed any final dividend for the reporting period. 

 

Contractor Tiong Seng Holdings BFI is raising $2 million by placing 20 million shares at 10 cents each to its longtime business partner Continental Steel.

 

At 10 cents, the placement price is a premium of 19.33% to Tiong Seng' s last traded price of 8.38 cents on Dec 27.

 

Upon completion of the placement, Continental Steel, in operation since 1982, will hold a 4.34% stake in Tiong Seng.

 

Tiong Seng says it will use all the net proceeds from the placement for working capital.

 

In its announcement on Dec 30, Tiong Seng says that placement is a " strategic investment" to " build on the established and robust working relationship between itself and Continental Steel.

 

" By combining our complementary expertise, we are well-positioned to tackle some of the most critical challenges in urban infrastructure and environmental sustainability,&rdquo says Tiong Seng' s executive director Pek Zhi Kai.

 

" This investment represents more than a financial transaction it is a commitment to advancing sustainable building practices and driving technological innovation in Singapore' s built environment sector," says Ronnie Lim, Continental Steel' s executive director.

 

" We believe that by pooling our resources and expertise, we can create more resilient, efficient, and environmentally responsible infrastructure solutions that will benefit our industry and community," adds Lim.

 

Tiong Seng was placed on the Singapore Exchange S68 Regulation&rsquo s watch-list in December 2023. Shares in Tiong Seng closed flat at 8.4 cents on Dec 30.