Tuan Sing in share buybacks; crypto mining rig seller cuts stake in SMI Vantage
Tuan Sing Holdings has been steadily buying back shares since last month. The company, which has interests in real estate and hospitality, most recently acquired 11,000 shares at 33 cents each on the open market on April 27. Earlier in the month, the company was buying back shares within a narrow price range as well. On April 3, 4 and 5, it had acquired 15,000 shares at 33 cents each, 11,000 shares at 33.5 cents each, and 6,000 shares at between 33.5 cents and 34 cents each respectively.
As at Dec 31, 2022, Tuan Sing’s net asset value was around $1.22 billion, which works out to 100.4 cents per share. This amount is slightly reduced from the 104 cents as at Dec 31 2021.
For FY2022 ended Dec 31, 2022, the company reported earnings of $4.6 million, down from earnings of $83.7 million in FY2021 which were boosted by an $89 million gain from the
disposal of a property, Robinson Point. If the one-off gain was excluded, Tuan Sing would have reported a loss of $5.3 million for FY2021.
Revenue in FY2022 was $115.3 million, down 9% from FY2021’s $248.7 million. The company attributed the lower turnover to a $50 million decline in revenue contribution from its industrial services business.
In Singapore, Tuan Sing owns properties such as 18 Robinson and Link@896 for rental income, which, according to its FY2022 earnings commentary on Feb 24, are seeing improving occupancies and contributing more recurring income. However, Tuan Sing warns that the commercial sector here is expected to “cool further”. It also has ongoing residential projects for sale, such as the 90unit Peak Residence.
Tuan Sing has interests in Indonesia and Australia too, owning hotels and other investment properties in cities such as Melbourne and Perth.
“Our well-diversified portfolio of assets and developments, coupled with our strong cash flow management, have enabled us to thrive and deliver a commendable set of results,” says CEO William Liem in his earnings commentary.
“Going forward, we will continue to leverage our competencies and improve our capabilities to seize new opportunities in a post-Covid environment, explore potential strategic partnerships and acquisitions in the region to expand our portfolio of assets and developments, while at the same time keep our balance sheet robust,” he adds.
Crypto mining rig seller sells
The9, a substantial shareholder of SMI Vantage, has been selling shares on the open market. On April 26, The9 sold 5.8 million shares for $312,150.20, which works out to an average of nearly 5.4 cents each. The following day, The9 sold another 1.8 million shares for $94,093.20, which works out to just over 5.2 cents each. This leaves The9 with 44.57 million shares, equivalent to 7.78%.
SMI Vantage, under its previous name, Singapore Myanmar Investco, operated duty-free shops in Myanmar’s airport. With the pandemic and the disruption to international traffic in and out of Myanmar, the company diversified into crypto mining with operations spread over Brunei, Singapore and Malacca.
The9 became a substantial shareholder in the newly-renamed SMI Vantage around the time the latter inked a deal to buy up to 4,000 crypto mining machines from a subsidiary of The9, which is a China-based firm listed on the Nasdaq. More recently, SMI Vantage diversified into the F&B business.
In 1HFY2023 ended Sept 2022, SMI Vantage reported a loss of US$1.2 million ($1.6 million) versus a loss of US$1.1 million in 1HFY2022. Revenue was up 297% y-o-y to US$809,000, with revenue mainly from the initial resumption of traffic in Yangon Airport.