Mainboard-listed construction group Tiong Seng Holdings says wholly-owned subsidiary Robin Village Developments is building a $26 million prefab hub to supply pre-cast concrete components. The 19,000 sqm mechanised prefab hub, to be completed in the third quarter of 2011, will double its current output to more than 100,000 cubic metres of pre-cast components annually.
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See Hup Seng, the provider of corrosion prevention services in Singapore and strategic value-added distributor of refined petroleum products in Asia Pacific, today reported that the Group has achieved higher revenue of $47.0 million for the three months ended 30 September 2010 (3Q10).
This represented a year-on-year (y-o-y) increase of 11% from $42.4 million in 3Q09, driven by improved sales performances of both core businesses – Refined Petroleum Distribution (TAT Petroleum) and Corrosion Prevention (CP).
Builder and developer Chip Eng Seng says after-tax profits for 3Q2010 increased by 37.0% to $23.7 million from $17.3 million in 3Q2009. Total revenue increased by 9.8% to $115.2 million from $104.9 million.
Construction
Revenue contribution came mainly from on-going projects such as Grange Infinite, Queenstown RC25, Sengkang N4C3 and Punggol West C25. However, revenue decreased by 10.9% to $71.7 million for 3Q2010 due to the completion of two major projects, The Parc Condominium and CityVista Residences in 3Q2010.
Construction group and property developer Tiong Seng Holdings reported a net profit attributable to equity holders of $7.5 million for the third quarter ended 30 September 2010 (3Q2010), down 24% from 3Q2009.
Group revenue rose 7% to $90.0 million due to an increase of $7.6 million in construction contract revenue, which was offset by a decline of $2.3 million in revenue from its development properties. For the first time, the group recorded revenue of $600,000 from direct sales and licensing of Cobiax technology for high-performance lightweight concrete slabs, after acquiring a majority stake in Switzerland-based Cobiax Technologies AG in September this year.
Chip Eng Seng Corporation says the company’s wholly-owned subsidiary, CEL Development (CEL) and Choicehomes Investments (CHI) have jointly tendered for and emerged as the top bidder of the land parcel at Pasir Ris E3 for Executive Condominium housing development. The purchase price for the site was $89.9 million or $263 psf per plot ratio.
Singapore-based plant builder yet to reply but traders attribute gains to bullish note from DBS Vickers, which has Buy call with $0.94 target. House says Hiap Seng’s huge P/E discount of 28%-50% to peers not warranted, especially given its steady earnings growth, healthy balance sheet, high dividend payout.
Tiong Seng (K2P.SG) +3.8% at $0.275, highest level since April listing, with construction and property development group latest to join recent rally among Singapore small caps. Volume also highest in 5 months, according to Dow Jones.
“Backed by an outstanding orderbook of US$1.1 billion ($1.5 billion), Tiong Seng’s construction business looks set to pick up momentum,” says Kim Eng Securities, which has no rating.
Chip Eng Seng Corporation says CES-Mckenzie (Vic) Pty Ltd, a wholly-owned subsidiary of the company, has agreed to sell one unit and one car park lot in the property project known as 33M in Melbourne, Australia, to one interested person Dawn Lim Sock Kiang for A$567,000 ($756,321).
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Chip Eng Seng Corporation says wholly-owned subsidiary, Chip Eng Seng Contractors (1988) Pte Ltd, has been awarded a $90 million by the Housing & Development Board for building works at Hougang Neighbourhood 9 Contract 12.
The contract comprises of the construction of six blocks of residential buildings with 699 dwelling units, a multi-storey carpark and community facilities. The construction period is approximately 31 months.
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Tiong Seng Holdings, the Mainboardâ€listed construction group, through its whollyâ€owned subsidiary Tiong Seng Contractors, says it has completed the acquisition of a majority stake in Cobiax Technologies AG.
Swissâ€based Cobiax Technologies is known for its highâ€performance lightweight concrete slabs, which it has developed and refined over the last five years. By positioning void formers within concrete slabs, the volume of concrete used can be reduced by up to 30%, thereby reducing dead load without modifying flexural strength.
As Cobiax removes the unnecessary dead weight in the slab, architects are now able to design larger and clearer span structures, where the distance between columns can be designed at up to 20 metres.
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Tiong Seng (K2P.SG) +4.1% at $0.255 vs flat at $0.245 midday following construction group’s announcement during lunch break of $270 million contract to build mixed development in Singapore comprising hospital, hotel, medical clinics, according to Dow Jones.
Tiong Seng Holdings says Samsung-Tiong Seng JV, a 55:45 joint venture between its wholly-owned subsidiary, Tiong Seng Contractors, and Samsung C&T Corporation, has been awarded a $270 million contract by Singapore HealthPartners for the development of hospital, hotel and medical clinics at Race Course Road.
DBS Vickers Securities in an Aug 26 research report says: “With an established track record of over 50 years, Tiong Seng is one of Singapore’s top rated contractors.
DBS Vickers starts Tiong Seng Holdings (K2P.SG) at Buy with S$0.36 target price, based on 30% discount to sum-of-parts valuation, according to Dow Jones.
DBS Vickers says Singapore-based civil engineering contractor has strong $1 billion orderbook to provide earnings visibility for next few years, with projects ranging from office, residential developments to public infrastructure jobs.
Chip Eng Seng Corporation says wholly-owned subsidiary CES Engineering and Construction has been informed by Punggol Field EC that its $142 million bid for building works has been accepted.
Punggol Field EC is a 40% and 60% joint venture between CEL Development Pte Ltd and Choicehomes Investments respectively.
Natural Cool Holdings, one of the leading providers of integrated climate management and switchgear solutions, says wholly-owned subsidiary, Natural Cool Investments (NCI) has completed the sale and leaseback of the group’s land and building at 29 Tai Seng Avenue.
This follows the related resolution passed at the Extraordinary General Meeting of the company held on July 30.
Tiong Seng Holdings says wholly-owned subsidiary, TSC Contractors (PNG) Ltd, has been awarded two contracts amounting totalling $32.6 million for the rehabilitation of roads from Rypinka to Okapa Station Road in Eastern Highlands Province, Papua New Guinea.
The contracts were awarded by the government of Papua New Guinea, funded by the Asian Development Bank. The project will start in October and be completed by June 2012. The earnings from the project will be recognised progressively according to the stages of completion.
With these two new contracts, Tiong Seng’s book order stands at $1 billion.
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Chip Eng Seng Corporation, the construction and property group, has reported a 76% surge in net profit to $47.2 million in the six months ended 30 June 2010 (1H 2010) and a 55% surge in 2Q 2010 net profit to $22.4 million.
2Q 2010 group revenue rose 84% to $125.0 million, boosted mainly by property sales as well as higher construction activities.
Hock Lian Seng Holdings, the civil engineer and a building materials supplier, says it posted a 61.9% y-o-y increase in net profit attributable to shareholders to $15.2 million in 1H2010 from $9.4 million in 1H2009.
Revenue for the group increased 8.9% to $118.8 million in 1H primarily due to the progressive recognition of revenue from the Marina Coastal Expressway and Jalan Gali Batu Depot projects in the Civil Engineering segment.
Together with better gross margins from new projects and additional works done, gross profit grew 30.8% y-o-y to $15.6 million.
Hock Lian Seng says the group also disposed $8.1 million worth of investment securities in quoted shares during the period. This resulted in a one-off gain of $4.0 million which in turn helped to lift the net profit.
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