Chip Eng Seng

Chip Eng Seng: Co. has been gaining traction after it begin buying back more shares recently, with 5.1m shares purchased in the range of 74-76c since mid-May. The buying action has been taking place ahead of bumper earnings to be recorded this year, due to the expected achievement of TOP of a number of property projects by Chip Eng Seng. Analysts are forecasting strong cashflow this year with cash levels, with net gearing expected to decline substantially, while the dividend payout is expected by to be even more generous than the 4c recorded in FY13. Overall, only 1 house covers the counter with a SOTP fairvalue of $1.04.