SINGAPORE (Jan 8): Chip Eng Seng, a construction company turned developer and investment property owner, saw its share price run up 48% in 2017. Why the heightened interest in Chip Eng Seng? Analysts are forecasting higher revalued net asset values (RNAVs), based on its early-mover advantage in buying land sites and a higher valuation for Park Hotel Alexandra in Singapore. In the next 12 months, though, cash outflow for construction costs could put dividends under pressure and act as a strain on cash flow.

Most of Chip Eng Seng’s stock gains were made from October, ­after land prices started to move sharply higher. Last year, in Issue 799 (Oct 2), The Edge Singapore flagged the likelihood of small-cap property stocks such as Chip Eng Seng attracting retail investor attention following a spate of land purchases. On

Oct 17, DBS Research initiated coverage on the company with a 27-page report. CIMB initiated a non-rated report on Nov 3.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook