Chip Eng Seng rakes in 173% more profits

From its property and construction divisions.

It has been a stellar quarter for Chip Eng Seng as it booked in profits for its EC development, Belysa, which obtained take over payments.

An RHB report shows that Chip Eng Seng’s construction arm reported higher gross profit due to several on-going projects which are at the active stage of construction and cost-savings derived from the finalisation of accounts with various sub-contractors.

RHB says that Chip Eng Seng might have a bumper year ahead, with net profit possibly crossing the $200 million mark.

Here’s more from RHB:

The group will obtain TOP for its wholly-owned DBSS project Belvia in 3Q14, which we expect to contribute SGD40m in net profit. In 4Q14, the group will be able to recognise SGD115m when its retail project at Alexandra Central obtained TOP. The construction arm, meanwhile, currently sits
on a backlog of SGD548m, primarily for HDB contracts, and should contribute SGD20m profit on a normalised basis. We continue to see value in the stock with the stock trading at a 50% discount to its RNAV of SGD1.63 and a dividend yield of 5%.