Chip Eng Seng (SGX:C29) - Share price, News & Analysis

Q: What is the Fair Price of C29 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

C29 (SGD0.54) is trading below our estimate of [[fair value]] (SGD42.99)

C29 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	0/6
Financial Health	3/6
Dividends	2/6

C29 Stock Overview

Chip Eng Seng Corporation Ltd, an investment holding company, engages in property development, construction, hospitality, property investment, and education businesses.

Rewards

Trading at 98.7% below our estimate of its fair value

Risk Analysis

Earnings have declined by 51.6% per year over past 5 years

Interest payments are not well covered by earnings

Dividend of 3.7% is not well covered by earnings

Chip Eng Seng Competitors

GSH

SGX:BDX

S$317.0m

Yoma Strategic Holdings

SGX:Z59

S$308.8m

Tuan Sing Holdings

SGX:T24

S$456.4m

Hiap Hoe

SGX:5JK

S$345.9m

Price History & Performance

Summary of all time highs, changes and price drops for Chip Eng Seng
Historical stock prices
Current Share Price	S$0.54
52 Week High	S$0.55
52 Week Low	S$0.41
Beta	0.62
1 Month Change	27.06%
3 Month Change	20.00%
1 Year Change	18.68%
3 Year Change	-25.00%
5 Year Change	-24.48%
Change since IPO	92.86%

Recent News & Updates

Apr 04

Chip Eng Seng (SGX:C29) Is Due To Pay A Dividend Of S$0.02

The board of Chip Eng Seng Corporation Ltd ( SGX:C29 ) has announced that it will pay a dividend of S$0.02 per share on...

Shareholder Returns

	C29	SG Real Estate	SG Market
7D	3.8%	0.7%	0.4%
1Y	18.7%	-1.4%	-1.8%

Return vs Industry: C29 exceeded the SG Real Estate industry which returned -3% over the past year.

Return vs Market: C29 exceeded the SG Market which returned -3.4% over the past year.

Price Volatility

Is C29's price volatile compared to industry and market?
C29 volatility
C29 Average Weekly Movement	4.1%
Real Estate Industry Average Movement	4.1%
Market Average Movement	4.9%
10% most volatile stocks in SG Market	11.8%
10% least volatile stocks in SG Market	2.3%

Stable Share Price: C29 is not significantly more volatile than the rest of SG stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: C29's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1998	1,526	Raymond Chia	https://www.chipengseng.com.sg

Chip Eng Seng Corporation Ltd, an investment holding company, engages in property development, construction, hospitality, property investment, and education businesses. The company constructs public housing projects and private projects, such as condominiums and executive condominiums, as well as industrial and commercial projects; develops residential, industrial, commercial, and mixed-use projects, as well as manages development projects. It also engages in leasing and management of investment properties; operates hotels; offers corporate services, treasury functions, and investments in marketable securities; construction and supply of equipment for water and wastewater treatment plants; acquisition of portable containers/structures for rent and provision of related services; building construction and construction project management services; wholesale of construction materials, hardware, plumbing, and heating equipment and supplies; modular building construction In addition, the company manufactures and trades in precast concrete components.

Chip Eng Seng Fundamentals Summary

How do Chip Eng Seng's earnings and revenue compare to its market cap?
C29 fundamental statistics
Market Cap	S$423.48m
Earnings (TTM)	-S$31.49m
Revenue (TTM)	S$1.12b

0.4x

P/S Ratio

-13.5x

P/E Ratio

Is C29 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
C29 income statement (TTM)
Revenue	S$1.12b
Cost of Revenue	S$972.72m
Gross Profit	S$142.68m
Other Expenses	S$174.17m
Earnings	-S$31.49m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.04
Gross Margin	12.79%
Net Profit Margin	-2.82%
Debt/Equity Ratio	202.2%

How did C29 perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

-50%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is C29 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for C29?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for C29. This is calculated by dividing C29's market cap by their current preferred multiple.
What is C29's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	S$423.48m

C29 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.5x
Enterprise Value/EBITDA	21.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does C29's PS Ratio compare to its peers?

C29 PS Ratio vs Peers

The above table shows the PS ratio for C29 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	2.9x
BDX GSH	3.3x	n/a	S$317.0m
Z59 Yoma Strategic Holdings	2.8x	n/a	S$308.8m
T24 Tuan Sing Holdings	1.9x	10.5%	S$456.4m
5JK Hiap Hoe	3.7x	n/a	S$345.9m
C29 Chip Eng Seng	0.4x	n/a	S$423.5m

Forward PS

Price-To-Sales vs Peers: C29 is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (2.9x).

Price to Earnings Ratio vs Industry

How does C29's PE Ratio compare vs other companies in the SG Real Estate Industry?

Price-To-Sales vs Industry: C29 is good value based on its Price-To-Sales Ratio (0.4x) compared to the SG Real Estate industry average (2.4x)

Price to Sales Ratio vs Fair Ratio

What is C29's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

C29 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.4x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate C29's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of C29 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: C29 (SGD0.54) is trading below our estimate of fair value (SGD42.99)

Significantly Below Fair Value: C29 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate C29's PEG Ratio to determine if it is good value.

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Future Growth

How is Chip Eng Seng forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

13.9%

Forecasted Real Estate industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Chip Eng Seng has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine whether Chip Eng Seng is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
Chip Eng Seng competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Chip Eng Seng performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-51.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: C29 is currently unprofitable.

Growing Profit Margin: C29 is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: C29 is unprofitable, and losses have increased over the past 5 years at a rate of 51.6% per year.

Accelerating Growth: Unable to compare C29's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: C29 is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (43.3%).

Return on Equity

High ROE: C29 has a negative Return on Equity (-2.77%), as it is currently unprofitable.

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Financial Health

How is Chip Eng Seng's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: C29's short term assets (SGD1.9B) exceed its short term liabilities (SGD940.1M).

Long Term Liabilities: C29's short term assets (SGD1.9B) exceed its long term liabilities (SGD1.1B).

Debt to Equity History and Analysis

Debt Level: C29's net debt to equity ratio (136.8%) is considered high.

Reducing Debt: C29's debt to equity ratio has increased from 162.3% to 202.2% over the past 5 years.

Debt Coverage: C29's debt is well covered by operating cash flow (33.9%).

Interest Coverage: C29's interest payments on its debt are not well covered by EBIT (1.6x coverage).

Balance Sheet

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Dividend

What is Chip Eng Seng current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.70%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: C29's dividend (3.7%) is higher than the bottom 25% of dividend payers in the SG market (2.34%).

High Dividend: C29's dividend (3.7%) is low compared to the top 25% of dividend payers in the SG market (6.22%).

Stability and Growth of Payments

Stable Dividend: C29's dividend payments have been volatile in the past 10 years.

Growing Dividend: C29's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: C29 is paying a dividend but the company is unprofitable.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (3%), C29's dividend payments are thoroughly covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure

CEO

Raymond Chia (57 yo)

6.33yrs

Tenure

Mr. Chia Lee Meng, also known as Raymond, PBM, served as Executive Chairman of Chip Eng Seng Corporation Ltd from May 5, 2016 to October 11, 2018 and has been its Chief Executive Officer and Executive Dire...

Leadership Team

Experienced Management: C29's management team is considered experienced (2.6 years average tenure).

Board Members

Experienced Board: C29's board of directors are considered experienced (3.7 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: C29 insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31