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.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

C29

-5.3%

SG Real Estate

-4.8%

SG Market


1 Year Return

-40.7%

C29

-34.3%

SG Real Estate

-29.0%

SG Market

Return vs Industry: C29 underperformed the SG Real Estate industry which returned -33.4% over the past year.

Return vs Market: C29 underperformed the SG Market which returned -27.1% over the past year.


Shareholder returns

C29IndustryMarket
7 Day0%-5.3%-4.8%
30 Day-20.0%-24.1%-22.1%
90 Day-23.8%-30.6%-27.5%
1 Year-37.5%-40.7%-31.8%-34.3%-26.0%-29.0%
3 Year-26.6%-36.8%-34.9%-40.4%-21.4%-29.7%
5 Year-34.7%-50.3%-32.4%-41.5%-20.4%-33.9%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: C29 (SGD0.48) is trading below our estimate of fair value (SGD1.87)

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 (9.5x) compared to the Real Estate industry average (9.8x).

PE vs Market: C29 is good value based on its PE Ratio (9.5x) compared to the SG market (10.2x).


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 (0.4x) compared to the SG Real Estate industry average (0.4x).


Next Steps

Future Growth

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

8.8%

Forecasted Real Estate industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if C29's forecast earnings growth is above the savings rate (1.8%).

Earnings vs Market: Insufficient data to determine if C29's earnings are forecast to grow faster than the SG market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if C29's revenue is forecast to grow faster than the SG market.

High Growth Revenue: Insufficient data to determine if C29's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if C29's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-44.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: C29 has high quality earnings.

Growing Profit Margin: C29's current net profit margins (3.2%) are lower than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: C29's earnings have declined by -44.4% 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 (-47.2%) over the past year, making it difficult to compare to the Real Estate industry average (-30.5%).


Return on Equity

High ROE: C29's Return on Equity (3.4%) is considered low.


Next Steps

Financial Health

How is Chip Eng Seng's financial position?


Financial Position Analysis

Short Term Liabilities: C29's short term assets (SGD2.4B) exceed its short term liabilities (SGD476.1M).

Long Term Liabilities: C29's short term assets (SGD2.4B) exceed its long term liabilities (SGD1.9B).


Debt to Equity History and Analysis

Debt Level: C29's debt to equity ratio (207.4%) is considered high.

Reducing Debt: C29's debt to equity ratio has increased from 127.6% to 207.4% over the past 5 years.

Debt Coverage: C29's debt is not well covered by operating cash flow (3.5%).

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

8.33%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: C29's dividend (8.33%) is higher than the bottom 25% of dividend payers in the SG market (3.23%).

High Dividend: C29's dividend (8.33%) is in the top 25% of dividend payers in the SG market (7.06%)


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: At its current payout ratio (79%), C29's 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

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

2.7yrs

Average management tenure


CEO

Raymond Chia (54yo)

4.17s

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

NamePositionTenureCompensationOwnership
Lee Meng Chia
Group CEO & Executive Director4.17yrsno data1.84% SGD6.9m
Cheong Yan Law
Chief Financial Officer6.67yrsno datano data
Gin Goh
Senior Legal Counsel & Company Secretaryno datano datano data
Puay Goh
General Manager of Marketingno datano datano data
Kang Ang
Chief Human Resource Officerno datano datano data
Siang Thong Yeo
Managing Director of Construction Division2.67yrsno datano data
Tee How Tan
Executive Director2.17yrsno datano data
Shaw Leong Yoong
Managing Director of Precast Division2yrsno datano data
Thiam Koh
Senior Vice Presidentno datano datano data
Lui Kathryn
Senior Vice Presidentno datano datano data

2.7yrs

Average Tenure

55yo

Average Age

Experienced Management: C29's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lee Meng Chia
Group CEO & Executive Director4.17yrsno data1.84% SGD6.9m
Tee How Tan
Executive Director2.17yrsno datano data
Abdul Jabbar Bin Karam Din
Independent Director2.17yrsno datano data
Teck Seng Low
Independent Non-Executive Director0.33yrno datano data
Boon Siong Neo
Independent Non-Executive Director0.33yrno datano data
Mong Seng Ang
Lead Independent Director4.42yrsno data0.023% SGD87.6k
Wai Han Lock
Independent & Non-Executive Director1.5yrsno datano data
Celine Tang
Non-Executive Chairman1.5yrsno data36.33% SGD136.5m
Ah Mee Yam
Non-Independent & Non-Executive Director0.33yrno data0.0026% SGD9.6k
Yaacob Ibrahim
Independent Director0.17yrno datano data

1.5yrs

Average Tenure

61yo

Average Age

Experienced Board: C29's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.6%.


Top Shareholders

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$375.848m
  • Shares outstanding: 783.02m
  • 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 Maldives. The company operates through Construction, Property Developments, Property Investments, Hospitality, and Corporate and Others segments. The company constructs public housing projects, condominiums, executive condominiums, modular buildings, and industrial and commercial projects; develops residential, commercial, and industrial properties, as well as manages development projects; and provides real estate management and consultancy services. It also leases investment properties, such as shophouses, office buildings, and industrial properties; operates hotels and island resort; and invests in marketable securities. In addition, the company acts as general building contractor; manufactures and trades in precast products; and provides general building engineering, financial, and treasury services. Further, the company operates Repton-brand pre-school center in Singapore. Chip Eng Seng Corporation Ltd was incorporated in 1998 and is headquartered in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 12:33
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.