Chip Eng Seng

[Curiousparty]

Would like to offer a "cursory " reply too without wasting too much of my time ....

Every piece of figure I used is backed by anecdotal evidence .

The whole world knows that the RevPar for hotel in spore is in the region of $250. My recurring income computation for alex hotel assumed a leasing model concept (similar to how UE passed their asset to third party for management ). Hence , the $105 is applied to total room capacity and not expected occupancy rate. $105 is a conservative figure.

As for the recurring income for CES centre , I have already applied an efficiency ratio . I think seasoned birds would have known that occupancy rate can easily hit more than 90% in that region of spore . Maybe next time I would have to magnify100 times .

[Teletubby]

Indeed.

"You’re neither right nor wrong because other people agree with you. You’re right because your facts are right and your reasoning is right—and that’s the only thing that makes you right. And if your facts and reasoning are right, you don’t have to worry about anybody else." -Warren Buffett

[Curiousparty]

http://www.tremeritus.com/2015/02/28/ise...surges-20/

This is yet another sign of who are the ones making "real profits"

[mechu]

In case anyone missed this annoucement yesterday after market close. Another good sized construction project won (1943 units). Last project won was back in Nov 2014 (1746 units in Woodlands). Kind of like winning 2 projects at one go actually since most HDB projects are normally under 1000 units.

AWARD OF S$258 MILLION CONTRACT BY HOUSING & DEVELOPMENT BOARD FOR
BUILDING WORKS AT TAMPINES NEIGHBOURHOOD 6 CONTRACT 1A/1B WITH PARK

The Board of Directors of Chip Eng Seng Corporation Ltd (the “Company”) is pleased to
announce that the Company’s wholly owned subsidiary, Chip Eng Seng Contractors (1988) Pte
Ltd has been awarded a S$258 million contract (the “Contract”) by the Housing & Development
Board for the construction works at Tampines Neighbourhood 6 Contract 1A/1B With Park.
The Contract comprises the construction of 15 blocks of residential buildings and other
community facilities. The construction period is 42 months.
The Contract is expected to contribute positively to the Group’s earnings and the net tangible
assets of the Group for the current financial year ending 31 December 2015.
None of the Directors and, to the best knowledge of the Directors, none of the substantial
shareholders or controlling shareholders of the Company, has any direct or indirect interest in
the transaction.

[Curiousparty]

EPS gain : 2 to 3 cents.

tks.

In case anyone missed this annoucement yesterday after market close. Another good sized construction project won (1943 units). Last project won was back in Nov 2014 (1746 units in Woodlands). Kind of like winning 2 projects at one go actually since most HDB projects are normally under 1000 units.

AWARD OF S$258 MILLION CONTRACT BY HOUSING & DEVELOPMENT BOARD FOR
BUILDING WORKS AT TAMPINES NEIGHBOURHOOD 6 CONTRACT 1A/1B WITH PARK

The Board of Directors of Chip Eng Seng Corporation Ltd (the “Company”) is pleased to
announce that the Company’s wholly owned subsidiary, Chip Eng Seng Contractors (1988) Pte
Ltd has been awarded a S$258 million contract (the “Contract”) by the Housing & Development
Board for the construction works at Tampines Neighbourhood 6 Contract 1A/1B With Park.
The Contract comprises the construction of 15 blocks of residential buildings and other
community facilities. The construction period is 42 months.
The Contract is expected to contribute positively to the Group’s earnings and the net tangible
assets of the Group for the current financial year ending 31 December 2015.
None of the Directors and, to the best knowledge of the Directors, none of the substantial
shareholders or controlling shareholders of the Company, has any direct or indirect interest in
the transaction.

[Curiousparty]

NAV ( Dec 2014) - $1.17

- Victoria project divestment (5 cents)
- Construction income for 2 yrs ( 7 cents)
- recurring income for 2 yrs ( 8 cents)
- Doncaster (5 cents)
- Hotel revaluation Gain (30 cents)
- Remaining of Junction 9 and 9 Residence ( 8 cents)
- Fernvale (10 cents)
- TM project (15 cents)

RNAV ~ $2.05. (recurring EPS ~ 9 cents)
53% discount to RNAV.

Did LKW also buy back CES equivalent of x% of entire outstanding share base?
e.g. in the most recent buyout, CES bought back 9.1mil of share or 1.44% of its outstanding share base at ave price of 88 cents.

For MOS, I look mostly at these few items, which give me "good sleep":

1. Discount to RNAV
- My estimate for Low Keng Huat is $1.57, currently around 52% discount. For KSH Holdings, RNAV estimate of $1.15, meaning discount of 55%.
- CES estimated RNAV of $1.66 gives me 41% discount.

2. Insider Share Repurchases near my entry
- $0.67-0.68 for LKH, and $0.51-0.53 for KSH. Makes me feel comfortable.
- CES gives me the same comfort here.

3. Significant Upcoming Catalysts
- LKH has Paya Lebar Central coming up next month, and KSH has a large number of highly sold projects for profit recognition.
- Similar for CES.

4. Good Management team and solid Track Record
- Comfortable with both LKH and KSH.
- A little worried about the departure of Raymond Chia.

In conclusion, it's the closing RNAV gap that prompted me to rebalance, and also not wanting to cough up extra cash for now. Hope that helps

Have decided to take profit on the other half of my CES stake, holding period around 9 months. Reason is to move capital to KSH for larger MOS. Wish buddies here all the best, will keep CES on my watchlist - definitely a solid co.

With this switch my property stock holdings are now concentrated in LKH & KSH, around 65/35 split.

(Fully divested)

I am invested in CES for sometime now but after this earnings, the pipleline for 2015 onwards doesn't offer much visibility. The resignation of its Director and its debt are definitely a concern.

BUT - the aggressive sharebuyback of its management could indicate that they are extremely confident about the company's prospects?

I might probably sell half of my stake in CES.

As much as I thank CES for their good returns these few years, I probably won't touch property stocks again!

Hi slowandsteady, mind explaining more in detail why LKH/KSH have larger MOS than CES? Is it just because of the debt?

Since they are all construction/property stocks, some comparison would be beneficial to all of us I think

[slowandsteady]

CP:

I'm not going to answer your rhetoric question - you just want to make your point and that's fine.

On the estimation of RNAV, everyone has their own style, and my style would be best described as ultra-conservative. Basically I only assign value to projects that are sold based on sold % (for example Fernvale will be $0 - do note KSH is the partner of CES for this project, I've always assigned $0 to RNAV both when I was CES shareholder, after I sold, and also when I purchased KSH). This will only change when the units get sold, hopefully fast

CES remains an excellent company, with a good margin of safety. I just switched out due to there being other even more attractive options, based solely on my opinion. All the best to you.

NAV ( Dec 2014) - $1.17

- Victoria project divestment (5 cents)
- Construction income for 2 yrs ( 7 cents)
- recurring income for 2 yrs ( 8 cents)
- Doncaster (5 cents)
- Hotel revaluation Gain (30 cents)
- Remaining of Junction 9 and 9 Residence ( 8 cents)
- Fernvale (10 cents)
- TM project (15 cents)

RNAV ~ $2.05. (recurring EPS ~ 9 cents)
53% discount to RNAV.

Did LKW also buy back CES equivalent of x% of entire outstanding share base?
e.g. in the most recent buyout, CES bought back 9.1mil of share or 1.44% of its outstanding share base at ave price of 88 cents.

For MOS, I look mostly at these few items, which give me "good sleep":

1. Discount to RNAV
- My estimate for Low Keng Huat is $1.57, currently around 52% discount. For KSH Holdings, RNAV estimate of $1.15, meaning discount of 55%.
- CES estimated RNAV of $1.66 gives me 41% discount.

2. Insider Share Repurchases near my entry
- $0.67-0.68 for LKH, and $0.51-0.53 for KSH. Makes me feel comfortable.
- CES gives me the same comfort here.

3. Significant Upcoming Catalysts
- LKH has Paya Lebar Central coming up next month, and KSH has a large number of highly sold projects for profit recognition.
- Similar for CES.

4. Good Management team and solid Track Record
- Comfortable with both LKH and KSH.
- A little worried about the departure of Raymond Chia.

In conclusion, it's the closing RNAV gap that prompted me to rebalance, and also not wanting to cough up extra cash for now. Hope that helps

Have decided to take profit on the other half of my CES stake, holding period around 9 months. Reason is to move capital to KSH for larger MOS. Wish buddies here all the best, will keep CES on my watchlist - definitely a solid co.

With this switch my property stock holdings are now concentrated in LKH & KSH, around 65/35 split.

(Fully divested)

I am invested in CES for sometime now but after this earnings, the pipleline for 2015 onwards doesn't offer much visibility. The resignation of its Director and its debt are definitely a concern.

BUT - the aggressive sharebuyback of its management could indicate that they are extremely confident about the company's prospects?

I might probably sell half of my stake in CES.

As much as I thank CES for their good returns these few years, I probably won't touch property stocks again!

Hi slowandsteady, mind explaining more in detail why LKH/KSH have larger MOS than CES? Is it just because of the debt?

Since they are all construction/property stocks, some comparison would be beneficial to all of us I think

[Ray168]

Good news on TM.

CES-QUEEN (VIC) PTY LTD - TOWER MELBOURNE AT 150 QUEEN STREET,
MELBOURNE, VICTORIA

The board of directors (the “Board”) of Chip Eng Seng Corporation Ltd. (the
“Company”) refers to the announcement dated 27 November 2014 on the
application made by Colonial Range Pty Ltd ("Colonial Range") to the Victorian
Civil and Administrative Tribunal (“VCAT”) to revoke the planning permit issued
to the Company’s wholly-owned subsidiary, CES-Queen (Vic) Pty Ltd. (the
"Cancellation Application").

The Board is pleased to inform that the Cancellation Application has been struck
out by VCAT on the basis that Colonial Range had no entitlement to object to the
said planning permit application and therefore had no standing to bring its
Cancellation Application which was misconceived and lacking in substance.

Submitted by Hoon Tai Meng, Executive Director on 3 March 2015 to the SGX.

[Curiousparty]

Another windfall of 15 cents EPS is locked in with the resolution of the TM dispute...

Good news on TM.

CES-QUEEN (VIC) PTY LTD - TOWER MELBOURNE AT 150 QUEEN STREET,
MELBOURNE, VICTORIA

The board of directors (the “Board”) of Chip Eng Seng Corporation Ltd. (the
“Company”) refers to the announcement dated 27 November 2014 on the
application made by Colonial Range Pty Ltd ("Colonial Range") to the Victorian
Civil and Administrative Tribunal (“VCAT”) to revoke the planning permit issued
to the Company’s wholly-owned subsidiary, CES-Queen (Vic) Pty Ltd. (the
"Cancellation Application").

The Board is pleased to inform that the Cancellation Application has been struck
out by VCAT on the basis that Colonial Range had no entitlement to object to the
said planning permit application and therefore had no standing to bring its
Cancellation Application which was misconceived and lacking in substance.

Submitted by Hoon Tai Meng, Executive Director on 3 March 2015 to the SGX.

[RT Knight]

let the market align. no need to worry about the share price, unless you are going to sell soon.

The great thing is that, the TM seem like still in the game. I see the group is willing to resolve the issue with the adjoining owner... "With regards to Tower Melbourne, the Group is still handling the proceedings brought about by the owner of the adjoining building. We intend to resume demolition work in 2015".

Besides, there is also some detail regarding the perth land. In the recent presentation slide, we can see the GFA of the project is about 486,113 sft. Not a small project.

Hopefully, we can have more confirm information from the April AGM regarding these 2 project (TM & West Cost Highway Perth) in Australia.

ha.. good news from TM as expected... hopefully, perth ptoject will be as expected.