31 July 2011

Chip Eng Seng - transformation in progress

Chip Eng Seng was listed public on year 1999. Since then it has achieved a very high compound grow rate in it's revenue as well as net profit. It's business model is to joint venture with land owner to build various type of buildings, including high rise residential buildings as wells commercial buildings. In my own opinion, it's grow rate accelerated since Raymond took over the management position in year 2006 from his father-in-law. As this is a family business, hence it is lucky that a son-in-law can assist him to manage daily operation works. He has another daughter who graduated from Australia and worked as senior architect there to assist him in property development division. So I believe that he has connection with the property developers there.

To me, my main concern is that whether it can still achieve higher grow rate in next five year. As Chio Eng Seng has no big land bank and has the advantages on construction sector ( it is one of the Grade A construction companies in Singapore), it relies heavily on the relationship with other property developers to achieve synergy between themselves. With highly transparency and good corporate governance in place, I believe that it is not a big problem for CES to grow it's profit to another sky high level in next ten years.

P/s: please consult your investment advisor before making any investment decision.

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...

View All My Posts Here