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Look at its past records. I think its good. Expect Div per share of 3-4ct for FY13 and 4-5ct for FY14 but if they book Alex Central shops in 2014, then maybe a big dividend payout? And bonus?
This company is generous. Proven by the past record.
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Another good dividend payment by Chip Eng Seng. Just declared 4ct. Look at its history of dividend:
2014: 4ct
2013: 4ct
2012: 4ct
2011: 4ct
2010: 3 ct
And 2014 will be bumper year for CES. EPS is going to surge to more than 30ct! What will the dividend for 2015 be? 6ct?
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I took a brief look at the financial ratios. Should there be a cause of concern that the DE ratio is on the rise?
Or is it normal for construction/property businesses?
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Not to worry abt CES debt, it is very common among developers. Risk in Singapore is low as buyers cannot default easily and also of progressive payment to developers they collect quite a bit by the time the project is say 50% completed. Even if buyers default the developer would have collected 50% of the money so even a 50% drop in property prices, developers are already covered. Also many of CES projects have got high level of sales except for Fulcrum (which is not a big project) so risk to CES is manageable.
Situation is different in Australia where buyers only pay 10% and then devlopers have to borrow for construction cost till TOP to collect balance from buyers. That's why CES is not developing Victoria Street yet as it's a big project, unless they can get TM off to high level of completion of construction. Otherwise if they take on 2 sets of big construction loans and then something bad happen and the banks call on the big loans they are caught.
I think the TM neighbour is making things difficult for CES and it was not expected by management.
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Developers are still producing good profit, especially those smaller ones...
(not vested)
Chip Eng Seng's 1Q earnings surge more than fourfold to $21.6 mil
Chip Eng Seng Corporation said on May 8 that earnings for 1Q2014 ended March rose more than fourfold to $21.6 million from a year ago. Group revenue also grew 51.7% y-o-y to $197.8 million during the quarter, boosted by higher revenue from both its construction and property development business segments. The construction division reported a 9.6% increase in revenue to $71.7 million from new and ongoing projects in Tampines, Jurong West, Yishun, Bukit Batok and Bukit Panjang. Revenue from the property development business rose 95% to $125.1 million after its commercial project 100 Pasir Panjang obtained TOP in March.
http://www.theedgesingapore.com/the-dail...6-mil.html#
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