http://www.businesstimes.com.sg/prem...it-36-20130222

Published February 22, 2013

Chip Eng Seng Q4 profit up 36%

By Teo Si Jia


ROBUST sales in Chip Eng Seng Corporation's property development front has sent its net profit 36 per cent higher to $39.21 million, from $28.83 million a year earlier.

Earnings per share were 5.93 cents, up from 4.35 cents. Net asset value rose to 71.03 cents, from a restated 63.04 cents in 2011. Revenue for the three months ended Dec 31, 2012, grew almost four-fold to $222.59 million, from $57.5 million previously, over half of which was accounted for by the property development sector.

The division recorded a turnover of $150.69 million, multiplying several times over from just $4.41 million a year ago, mainly from the sales of residential units of My Manhattan in Singapore and 33M in Melbourne. Its construction arm pulled in $71.01 million in the quarter, 36.1 per cent higher than that of a year ago.

The construction firm also recorded a net fair value gain on investment properties of $29.97 million, from $5.46 million in the corresponding quarter last year. This comprised of the fair value gain on the property at 100 Pasir Panjang.

Net profit for the full year declined 34.3 per cent to $81.27 million from $123.70 million even as revenue shot up 71.4 per cent to $617.13 million from $359.98 million previously.

Net debt to equity ratio ebbed to 0.48, as compared to 0.61 as at Dec 31, 2011, from the repayment of loans.

"The group will be recognising contributions from three projects when they are completed in 2013 - Privé, Belysa and 100 Pasir Panjang," said executive chairman of Chip Eng Seng, Lim Tiam Seng, of its existing projects.

Forty per cent-owned executive condo Privé will obtain its temporary occupation permit in the second half of the year while its planned mixed commercial and residential development at the corner of Yishun Ring Road and Yishun Avenue 9 is slated for a fourth quarter launch.

The outstanding net order book of the group stood at $575 million as at Dec 31, 2012, inclusive of the contracts awarded by HDB last year.

Chip Eng Seng has kept its dividend at 4.0 cents, unchanged from a year earlier. The counter closed one cent lower at 81.5 cents yesterday.