Tuesday, August 13, 2013

Chip Eng Seng

Chip Eng Seng: 2Q13 earnings of $6.8m (-8.2% y/y) while revenue improved to $109.1m (+32%). This came largely from construction and property development projects. Construction revenue improved 14.3% to $66.9m from on-going projects in their active stage of construction, while property development climbed 79% to $41.5m due to the progressive recognition of My Manhattan. Revenue contribution from its property investments segment came in lower at $0.6m (-28.7%) due to tenants that vacated its Queen Street office property in Australia for the upcoming property development of Tower Melbourne. Separately, Chip Eng Seng announced a contract of $38.5m from HDB for building works at Tampines neighbourhood 4 contract 27. The contract comprises of the construction of 2 blocks of residential buildings with 289 dwelling units and other community facilities which have been partially carried out by another contractor. The construction period will span 13 months. Chip Eng Seng currently trades at 5.9x trailing P/E.

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