Chip Eng Seng Update - Award of $210M contract by HDB

AWARD OF $210 MILLION CONTRACT BY HOUSING & DEVELOPMENT BOARD FOR
BUILDING WORKS AT BUKIT BATOK NEIGHBOURHOOD 1 CONTRACT 13 AND BUKIT BATOK NEIGHBOURHOOD 2 CONTRACT 23


The Board of Directors of Chip Eng Seng Corporation Ltd (the “Company”) is pleased to
announce that the Company’s wholly owned subsidiary, Chip Eng Seng Contractors (1988) Pte
Ltd (“CESC”) has been awarded a $210 million contract by the Housing & Development Board
(“HDB”) for building works at Bukit Batok Neighbourhood 1 Contract 13 and Bukit Batok
Neighbourhood 2 Contract 23 (“the Contract”).

The Contract comprises of the construction of 5 blocks of residential buildings with 1,232
dwelling units and other community facilities. The construction period is approximately 42
months.

Including the above Contract awarded and the Bukit Panjang N4C15 awarded in August 2012,
the Group’s outstanding order book for its construction contracts increased from $364 million as
announced in our 2Q2012 results announcement to $711 million.

The Contract is not expected to have any material impact on the net tangible assets and
earnings per share of the Group for the current financial year ending 31 December 2012.
None of the Directors and, to the best knowledge of the Directors, none of the substantial
shareholders or controlling shareholders of the Company, has any direct or indirect interest in
the transaction.

Source: Company

In my humble opinion, I would expect CES to get more projects from HDB as CES is one of the well known A1 contractors in Singapore and they have a long term and stable relationship with the government.

The other factor would be due to the increasing supply of HDB flats and ECs after the government has listened to the resident's voice of unaffordable housing price. The government's move for more property supply seems is unstoppable, until there is any financial crisis coming to this small island again.