SGX:C29

Stock Analysis Report

Executive Summary

Chip Eng Seng Corporation Ltd, an investment holding company, engages in the construction, property development and investment, and hospitality businesses primarily in Singapore, Australia, Malaysia, and Maldives.

Rewards

Trading at 24.7% below its fair value

Pays a high and reliable dividend of 6.5%

Risk Analysis

Earnings have declined by -41.99% per year over past 5 years

Interest payments are not well covered by earnings



Snowflake Analysis

Undervalued established dividend payer.

Share Price & News

How has Chip Eng Seng's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: C29 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.6%

C29

0.06%

SG Real Estate

0.2%

SG Market


1 Year Return

-16.9%

C29

-0.5%

SG Real Estate

2.6%

SG Market

Return vs Industry: C29 underperformed the SG Real Estate industry which returned -0.5% over the past year.

Return vs Market: C29 underperformed the SG Market which returned 2.6% over the past year.


Shareholder returns

C29IndustryMarket
7 Day-1.6%0.06%0.2%
30 Day1.7%-1.2%-1.1%
90 Day-2.4%0.9%1.9%
1 Year-12.3%-16.9%2.5%-0.5%6.8%2.6%
3 Year13.4%-2.4%6.4%-2.0%16.5%4.0%
5 Year-7.7%-29.7%3.0%-10.7%13.0%-6.0%

Price Volatility Vs. Market

How volatile is Chip Eng Seng's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Chip Eng Seng undervalued compared to its fair value and its price relative to the market?

24.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: C29 (SGD0.62) is trading below our estimate of fair value (SGD0.82)

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


Price To Earnings Ratio

PE vs Industry: C29 is good value based on its PE Ratio (8.3x) compared to the Real Estate industry average (10.1x).

PE vs Market: C29 is good value based on its PE Ratio (8.3x) compared to the SG market (13.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: C29 is good value based on its PB Ratio (0.5x) compared to the SG Real Estate industry average (0.5x).


Next Steps

Future Growth

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

4.2%

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.


Next Steps

Past Performance

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

-42.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: C29 has high quality earnings.

Growing Profit Margin: C29's current net profit margins (4.3%) are lower than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: C29's earnings have declined by -42% per year over the past 5 years.

Accelerating Growth: C29's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: C29 had negative earnings growth (-7.2%) over the past year, making it difficult to compare to the Real Estate industry average (-8.2%).


Return on Equity

High ROE: C29's Return on Equity (5.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Chip Eng Seng's financial position?


Financial Position Analysis

Short Term Liabilities: C29's short term assets (SGD2.3B) exceed its short term liabilities (SGD260.5M).

Long Term Liabilities: C29's short term assets (SGD2.3B) exceed its long term liabilities (SGD2.0B).


Debt to Equity History and Analysis

Debt Level: C29's debt to equity ratio (236.4%) is considered high.

Reducing Debt: C29's debt to equity ratio has increased from 102.2% to 236.4% over the past 5 years.

Debt Coverage: C29's debt is not well covered by operating cash flow (5.6%).

Interest Coverage: C29's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

Inventory Level: C29 has a high level of physical assets or inventory.

Debt Coverage by Assets: C29's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

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

6.50%

Current Dividend Yield


Dividend Yield vs Market

company6.5%marketbottom25%2.5%markettop25%5.4%industryaverage3.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: C29's dividend (6.5%) is higher than the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: C29's dividend (6.5%) is in the top 25% of dividend payers in the SG market (5.44%)


Stability and Growth of Payments

Stable Dividend: C29's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.9%), C29's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Chip Eng Seng's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Raymond Chia (54yo)

3.8yrs

Tenure

0

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 ...


Management Age and Tenure

2.3yrs

Average Tenure

55yo

Average Age

Experienced Management: C29's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

1.8yrs

Average Tenure

57yo

Average Age

Experienced Board: C29's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyS$72,795,16421 Oct 19
Celine Tang
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares115,547,903
Max PriceS$0.63
BuyS$2,708,68421 Oct 19
Senz Holdings Limited
EntityCompany
Shares4,299,500
Max PriceS$0.63
BuyS$1,528,06521 Oct 19
Sock Lim
EntityIndividual
Shares2,425,500
Max PriceS$0.63
BuyS$1,752,18721 Oct 19
Lee Meng Chia
EntityIndividual
Role
Chief Executive Officer
Group CEO & Executive Director
Shares2,781,250
Max PriceS$0.63
SellS$72,45004 Apr 19
Wai Han Lock
EntityIndividual
Role
Member of the Board of Directors
Independent & Non-Executive Director
Shares90,000
Max PriceS$0.80

Ownership Breakdown

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


Management Team

  • Siang Thong Yeo (56yo)

    Managing Director of Construction Division

    • Tenure: 2.3yrs
  • Raymond Chia (54yo)

    Group CEO & Executive Director

    • Tenure: 3.8yrs
  • Cheong Yan Law (48yo)

    Chief Financial Officer

    • Tenure: 6.3yrs
  • Tee How Tan (60yo)

    Executive Director

    • Tenure: 1.8yrs
  • Gin Goh

    Senior Legal Counsel & Company Secretary

    • Tenure: 0yrs
  • Shaw Leong Yoong

    Managing Director of Precast Division

    • Tenure: 1.7yrs
  • Joanne Goh

    General Manager of Marketing

    • Tenure: 0yrs
  • Thiam Koh

    Senior Vice President

    • Tenure: 0yrs
  • Kang Ang

    Chief Human Resource Officer

    • Tenure: 0yrs
  • Lui Kathryn

    Senior Vice President

    • Tenure: 0yrs

Board Members

  • Abdul Jabbar Bin Karam Din

    Independent Director

    • Tenure: 1.8yrs
  • Raymond Chia (54yo)

    Group CEO & Executive Director

    • Tenure: 3.8yrs
  • Mong Seng Ang (70yo)

    Lead Independent Director

    • Tenure: 4.1yrs
  • Wai Han Lock (51yo)

    Independent & Non-Executive Director

    • Tenure: 1.2yrs
  • Serena Tang

    Non-Executive Chairman

    • Tenure: 1.2yrs
  • Tee How Tan (60yo)

    Executive Director

    • Tenure: 1.8yrs

Company Information

Chip Eng Seng Corporation Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chip Eng Seng Corporation Ltd
  • Ticker: C29
  • Exchange: SGX
  • Founded: 1998
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: S$481.248m
  • Shares outstanding: 782.52m
  • Website: https://www.chipengseng.com.sg

Location

  • Chip Eng Seng Corporation Ltd
  • No. 12-01, CES Centre
  • 171 Chin Swee Road
  • Singapore
  • 169877
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
C29SGX (Singapore Exchange)YesOrdinary SharesSGSGDNov 1999
QK5BST (Boerse-Stuttgart)YesOrdinary SharesDEEURNov 1999

Biography

Chip Eng Seng Corporation Ltd, an investment holding company, engages in the construction, property development and investment, and hospitality businesses primarily in Singapore, Australia, Malaysia, and M ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 12:34
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.