Chip Eng Seng

More
10 years 2 months ago - 10 years 2 months ago #20685 by potatolover
Replied by potatolover on topic Chip Eng Seng
CES is still very undervalued.

Roxy Pacific
Book NAV = 29.5 cents
ANAV (adjusted NAV) or RNAV = 66.6 cents
Current Share Price = 58 cents
Discount to ANAV = 13%
Premium above book NAV = 97%

Wee Hur
Book NAV = 24 cents
RNAV = ??
Share price = 38 cents
Discount to RNAV = ?
Premium above book NAV = 58%

Oxley
Book NAV = 17 cents (Dec 2013)
RNAV = ??
Share price = 63
Discount to RNAV = ?
Premium above book NAV = 270%.


Applying the above to CES case
Book NAV = 80 cents (Q2-2014)
Share price = 87 cents
RNAV (by end 2014) = ~$1.15
RNAV (by end 2015) = ~$1.60
RNAV (by end 2018) = ~$2.23

15% discount to the above RNAV
end FY14 - $0.98
end FY15 - $1.36
end FY18 - $1.90
Last edit: 10 years 2 months ago by potatolover.

Please Log in or Create an account to join the conversation.

More
10 years 2 months ago #20696 by axe
Replied by axe on topic Chip Eng Seng
(NRH) Chip Eng Seng - Increasing its portfolio of recurring revenue

+
+

Chip Eng Seng - Increasing its portfolio of recurring revenue
2014-08-22 01:27:35.431 GMT

Maintain forecasts and recommendation. We maintain our full year forecasts given that the lower-than-expected 2Q14 profits was mainly due to timing recognition issues with Belysa. As a result, our SOTP fair value remains at S$1.04. With a 29% potential upside and an attractive 5% dividend yield, maintain overweight.

Provider ID: 00000358


-0- Aug/22/2014 01:27 GMT

Please Log in or Create an account to join the conversation.

More
10 years 2 months ago #20707 by potatolover
The most recent share buyback on 22 Aug came as a pleasant surprise.

One might be wondering why the company did not do the buyback during the recent pullback to 79 cents...

Any view on this pls? Tks.

Please Log in or Create an account to join the conversation.

More
10 years 2 months ago #20709 by potatolover
Replied by potatolover on topic Chip Eng Seng
Hi Sumer

NRA capital has forecast the following surplus figure

a. investment properties ($21mil)
b. Hotel surplus ($68mil)


Do u think that the figures are on the very conservative side?
(my estimate of the hotel surplus is ~$184mil).
Attachments:

Please Log in or Create an account to join the conversation.

More
10 years 2 months ago #20722 by valueHunter88
Replied by valueHunter88 on topic Chip Eng Seng
Chip Eng Seng Corporation Ltd- PhillipCapital Market Watch, enjoy!

Please Log in or Create an account to join the conversation.

More
10 years 2 months ago #20726 by sumer
Replied by sumer on topic Chip Eng Seng
Hi plover, I think we all use different cost and value assumptions, leading to different surplus for CES' Alexandra hotel.

I am surprised at NRA's figures too, since they had assumed a $850k per key value, which is higher than my assumption of $800k. The report did not indicate how much total cost they assign to the hotel development, but if you work backwards, a $850k per key would give the hotel a market value of $382.5m. A $68m surplus (assume no corporate tax)means NRA estimated the hotel to cost $314.5m (land and all other costs). Since land cost is clearly spelled out by CES itself to be $122.6m for the hotel portion, that leaves $191.9m as construction and other costs for the hotel.

This is a strangely high figure considering that CES awarded construction to Keong Hong for the whole project (hotel plus shops) for only $101m. Even if other costs (like beds and such) are added in, that will never add to $191.9m.

I am not sure my maths above is correct, but Phillip Securities' estimate of the hotel surplus of $139m does make NRA's figure look odd. My own is slightly below Phillip's figure.

In any case, I like CES' recent Fernvale sites purchase, and I think the sites can be quite profitable (perhaps EPS of 12-15ct), compared to what I read (that it will just be keeping its construction arm occupied).
Today's continued share buyback at nearly 90ct is another vote of confidence by the company.

Please Log in or Create an account to join the conversation.

Time to create page: 0.221 seconds
Powered by Kunena Forum
 

We have 465 guests and no members online

rss_2 NextInsight - Latest News