Chip Eng Seng

Chip Eng Seng: Phillip has an unrated note. Identifies 3 drivers that could underpin NAV growth over the next 3 years: i) Increased public housing construction to support construction demand. ii) Residential projects under development are mostly fully/substantially sold providing relatively secure earnings outlook. Estimates the net margins of these projects ranging 8% to 33%, which could translate to accretion of ~$0.51/ sh iii) High selling price achieved at Alexandra Central stratatitled retail units to further boost accretion to NAV by an estimated ~$0.331 Phillip derives an RNAV of $1.49 (end 2015 projection), vs the co’s NAV of $0.648/sh as at 3Q12.