Chip Eng Seng

(07-11-2017, 08:43 AM)Sumeria Wrote: Many stocks have their admirers and detractors, and CES is no different. But with SBL and other shorting methods, we don't really know if negative prognosis of a counter is with or without vested interest.

I don't think CES' rise and fall was due to TM alone. There could be perhaps some effect but I think the positive side of it has already come and gone a couple of years ago. The recent surge in CES looks like genuine accumulation and for good reasons (none of it is due to TM): its clearing of old stock Fulcrum, sales at Grandeur, potential of Woodleigh site, revaluation surplus at Park Hotel Alexandra, and of course proven management's acumen in the business and generosity in sharing profits.                       

Add to all that, a RNAV of about $1.80 and a dividend yield of above 4% certainly explain CES' price trend. TM has been a written off story for a while now and I don't think CES' current share price has any of its glitter or dust on it.

You can rationalise how fantastic the RNAV, dividend yield, etc etc is, but CES is still quite a mainstream property counter and will reflect general sentiment in the sector. It has gone up not due to all those "good reasons" but rather general sentiment.

Some observations :

CES is up more than 30% in the past couple months from 73c level.

Other property counter since Sep 15 (using this date as starting point, as it seems most property counter was trading sideways but started tracking up after this date : )
Tuan Sing 35c->44c (25% up)
Wee Hur 24->29c (20% up)
Sing Holdings 39 -> 51c (30% up)
Oxley 56-> 72c (28% up)
Of course not all property counter is up so much but generally quite a few counter have benefit from recent run up in the sector..

So CES going up is very possibly due to  "rising tide lifts all boats" phenomena rather than investors suddenly realising it has value or accumulating.

We will have to wait and see for TM story, it has probably been reflected in the share price somewhat, but there is possibilty some investors are waiting to see if CES can successfully offload it, like it did for the other site in melbourne. Unit market is already showing some slowdown on the ground in Melbourne so this time round CES could be stuck with the site for a while and I am not sure how much debt they still have on the books. Should things get bad in Melbourne like in Perth, some impairment may have to be made in the future.

Termination of Tower Melbourne leaves Chip Eng Seng unscathed; may turn out to be blessing instead


CES announced on 2 November that it will commence the termination of sale contracts for its Tower Melbourne ™ project entered by its wholly-owned subsidiary in Australia, CESQ. This has been widely anticipated given that construction has been delayed indefinitely by ongoing legal proceedings since 2013 and as the sunset date for underlying sales contracts is set to kick in from 2018 onwards.

The termination process for the 556 outstanding contracts would entail the return of the initial deposit (10% of purchase price) together with the interest accrued on the deposit. The necessary funds have already been set aside and managed under a trust. CES also disclosed that they will be exploring other viable exit options for the TM site concurrently, including offering the property for sale.

Termination of Tower Melbourne leaves Chip Eng Seng unscathed; may turn out to be blessing instead

Never let bitter feud interferes with opportunities to make money

"But in a surprise twist a little more than a week later, the two developers have set aside their differences and joined forces to offer their combined Queen Street sites for sale for up to $150 million."
http://www.theage.com.au/business/proper...zgjll.html

CES have no choice lah. Who is gonna buy a half demolished building with a lawyer happy neighbour? Can't make money if you can't build on the site.

In addition, Sydney property market started downturn liao, melbourne will soon follow, better chance to sell off "en bloc" to hopefully snag a big buyer. Possibly sharp correction coming for the oversupplied apartment market there if not crash for next few years.

And for their joint sale, other than cashed up ah tiong company, i dun see any developers wanting this block at that price. I think many developers are trying to get out of the Melbourne apartment market and move up north to the GoldCoast/Brisbane market where it is slated to next boom.

The previous approval happy land minister also gone liao, so even anyone wanna buy they might have big trouble getting approved for any Tower sort of big development, really don't see any buyer interested. But who knows.

Sent from my SM-T800 using Tapatalk

Award of $168 Million Design and Build Public Housing Contract at Sengkang Neighbourhood 4 Contract 39 & 40 by the Housing & Development Board

The company announced that it's wholly owned subsidiary, Chip Eng Seng Contractors (1988) Pte Ltd has been awarded a $168 million design and build contract at Sengkang Neighbourhood 4 Contract 39 & 40 by the Housing & Development Board.

The Contract comprises the design and construction of residential buildings, carparks and community services which will be carried out in 2 parts. The first part involves the approval of design, the relocation of bus shelters and construction of bus bays. The first part will take approximately 10 months to complete.

The second part involves the construction of 10 blocks of residential buildings, two carparks and community services. The construction period is 32 months from the date of obtaining approval from HDB.

The Contract is not expected to have any material impact on the earnings and the net tangible assets of the Company for the current financial year ending 31 December 2018.

PROPOSED DIVERSIFICATION INTO EDUCATION SECTOR

http://infopub.sgx.com/FileOpen/Proposed...eID=491713

For those who don't already know, Simon Cheong via SC Global's subsidiary Simmic Investment, is now the 4th biggest shareholder of CES shares, owing 28.785m or 4.64% as at 16 Mar 18. At the same time, the top 20 shareholders now own 64.7% of CES shares, compared to only 58.27%, up 6.43%, with many nominee accounts seeing big increases in holdings. Kenyon's direct holding fell to 9m shares, down from 24.7m, but its selling is well absorbed by the new entrants. The above developments bode well for CES shares, apart from its good fundies, capable mgt and generous major shareholders, of course.

It seems like the founding Lim family has sold most (if not all) their shares in Chip Eng Seng at $1.08 to Celine Tang, likely to be from the SingHaiyi group. Any views on this development for Chip Eng Seng? Thanks.

http://infopub.sgx.com/FileOpen/CES%20-%...eID=528635
https://en.wikipedia.org/wiki/Gordon_Tang

(07-10-2018, 08:36 AM)weii Wrote: It seems like the founding Lim family has sold most (if not all) their shares in Chip Eng Seng at $1.08 to Celine Tang, likely to be from the SingHaiyi group. Any views on this development for Chip Eng Seng? Thanks.

http://infopub.sgx.com/FileOpen/CES%20-%...eID=528635
https://en.wikipedia.org/wiki/Gordon_Tang

Hi there, my personal take (without doing in-depth analysis) will be that it is a good deal for the Lim family to cash out with uncertainties in the real estate & construction sector on the horizon.

Thanks Redcape for your view.

Mr Gorden Tang, husband of Mrs Celine Tang, was named 32nd richest in Singapore by Forbes.
https://www.forbes.com/profile/gordon-ta...2c2e4b3596

He is active in building townships in Shantou, China.

I wonder whether Chip Eng Seng will be a passive investment for the Tang family. A General Offer may arise if the Tang family raise their stake above 30%?