Chip Eng Seng

[Curiousparty]

CES must be a great fool to buy ~ 20mil shares from 75 cents to 97 cents....The same can be said for the married deal (17mil shares) at 95.5 cents..

By end of 2015, NAV (not RNAV) will reach ~$1.60. By end of 2016, NAV (not RNAV) is expected to hit $1.80.

If share price still remains below $1, chance of privatization will increase significantly....

One should really be aware of those shares already trading above their NAV (e.g Wee Hur, etc)..

*******

Thanks ves....

Looks like bear market has just started, prepare to see the downfall of ces...might still hover around 0.90...after xd.... most likely 0.80 or below...and as the bear prowls on... we will see 0.45 or lower....

[Curiousparty]

Alex Hotel has obtained TOP last week

Year end revaluation gain ~ 30 cents secured + recurring income

NAV by year end 2015 = $1.17 + $0.30 + $0.20 (estimated EPS) - $0.06 = ~$1.60

Share price (XD) = 90 cents or 44% discount to forecast 2015 (year-end) NAV

[$wise]

Alex Hotel has obtained TOP last week

Year end revaluation gain ~ 30 cents secured + recurring income

NAV by year end 2015 = $1.17 + $0.30 + $0.20 (estimated EPS) - $0.06 = ~$1.60

Share price (XD) = 90 cents or 44% discount to forecast 2015 (year-end) NAV

Thank you Curiousparty for sharing.
You must have attended the AGM ?
Tell us more , pls .....

[Teletubby]

I attended the AGM earlier this morning.

Executive director Hoon Tai Meng has shown that he is able to step up after the departure of Mr Raymond Chia by answering most of the questions posed by shareholders.

Some key take aways from the meeting:
1. Park Hotel Alexandra received TOP last week. Revaluation of the hotel will be done at year end, with the gains/losses included in comprehensive income.

2. Doncaster project was divested to avoid execution risk, as the construction timing of that project is likely to coincide with Tower Melbourne.

3. Contract for Tower Melbourne stipulates delivery to buyers latest by 3Q 2018. However, estimated completion is in 2019 due to delay in demolition works. Fortunately, no financial penalties will be levied on CES, just the possible refunding of the 10% buyer's deposit if the buyer decides not to take possession because of the delay. CES can then resell the unit if needed.

4. Fulcrum is target for relaunch in 2H 15. No impairments have been made to the equity pertaining to the project after an evaluation done by management. Management will re-evaluate whether an impairment is needed after the relaunch, depending on the take up rate.

5. Fernvale is target for launch as a single project with almost 1400 units in 2H 15. The project's GDV is SGD 1 billion (!!!) according to Mr Hoon. Due to the conservative price paid for the land, and also the scale of the project, CES has a cost advantage when it comes to pricing the units.

[Curiousparty]

1. Divestment was for Victoria project and not Donaster project. Divestment was rationalized on the basis that some quick profits can be made without being tied down by further working capital requirements.

2. Fulcrum project will be re-launched in Q3 2015 with actual units being modified to serve as showrooms. Save on cost and easier to sell units if buyers can see actual units. Being in a strategic location, a slight discount (if any) to the original price will help to drive quick sales.

3. TM project - Company will start demolition work once the protection works are sorted out. As the buyers bought at around A$700-800PSF, they are already in the money. Unless the Melbourne property market crashed by more than 30% from current level (similar CBD units are selling at ~A$1000PSF now) , buyers are unlikely to walk away. Company seemed to believe that there should not be an issue selling the units even if the buyers walk away. Company seemed adamant to proceed with the TM project no matter what given that they have come a long way (e.g. litigation with neighbor, etc.)

4. Company continues to hold the view that their share price is undervalued and will continue to perform share buyback whenever it is possible to do so, in accordance with market/corporate rules. E.g. company cannot buy back shares during blackout period of 2 weeks ahead of quarterly results or impending announcement of new developments, etc.

I attended the AGM earlier this morning.

Executive director Hoon Tai Meng has shown that he is able to step up after the departure of Mr Raymond Chia by answering most of the questions posed by shareholders.

Some key take aways from the meeting:
1. Park Hotel Alexandra received TOP last week. Revaluation of the hotel will be done at year end, with the gains/losses included in comprehensive income.

2. Doncaster project was divested to avoid execution risk, as the construction timing of that project is likely to coincide with Tower Melbourne.

3. Contract for Tower Melbourne stipulates delivery to buyers latest by 3Q 2018. However, estimated completion is in 2019 due to delay in demolition works. Fortunately, no financial penalties will be levied on CES, just the possible refunding of the 10% buyer's deposit if the buyer decides not to take possession because of the delay. CES can then resell the unit if needed.

4. Fulcrum is target for relaunch in 2H 15. No impairments have been made to the equity pertaining to the project after an evaluation done by management. Management will re-evaluate whether an impairment is needed after the relaunch, depending on the take up rate.

5. Fernvale is target for launch as a single project with almost 1400 units in 2H 15. The project's GDV is SGD 1 billion (!!!) according to Mr Hoon. Due to the conservative price paid for the land, and also the scale of the project, CES has a cost advantage when it comes to pricing the units.

[Petertan]

Thanks guy for making the effort to attend the meeting and bring us the first hand report. Really appreciate all this. Vested

[BeDisciplined]

Thank you for sharing the nuggets of information from AGM

[$wise]

Wow !
So interesting.
Did anyone ask about Raymond Chia's mysterious departure ?

Thanks

[ngcheeki]

Wow !
So interesting.
Did anyone ask about Raymond Chia's mysterious departure ?

Thanks

IIRC, Chairman said Raymond Chia departed to set up his own business.

[$wise]

Oic... Thanks Bro, that has help addressed a mysterious concern.

Looks like, the handling and taking over was smooth and amicably.
Looks like, CES could have inevitably bred a competitor.

If Raymond can ethically and professionally manage the conflict of interest, we shall respect his rights and offer him all our blessings.

Raymond could have lost his direction, seeing billions of $ generated for CES, when he was the chief.

However, gentleman must have realized by now that things are as rosy when he no longer carries the CES logo.

Does he have any personal connections to take along with him any goodwill to a competitor's company ?
Certainly, not that kind of Leedership hah ?

Anyway, everything is awesome for CES.
Have a nice day !