Chip Eng Seng stock has gained 29% in the past 12 months, rising from 75 cents to 96.5 cents. Chart: Yahoo!CHIP ENG SENG CORPORATION's share repurchases in the past 12 months certainly have bolstered investor sentiment towards the company.The construction-cum-property developer bought back 18,965,200 shares in the past 12 months.
Considering the trading range of the stock, Chip Eng Seng would have coughed up an estimated $15 million for the shares.
It will save on paying the 6-cent-a-share final dividend that it has proposed for FY14. The amount 'saved' is about S$1.14 milliion.
Concurrently, the share price has been on an uptrend and, better still, the company has just reported a 283% jump in FY2014 net profit to S$280.7 million. It's a record for the company.
Revenue exceeded the S$1 billion mark at S$1.11 billion, up 120% year-on-year.
Opening soon -- Chip Eng Seng's Alexandra Central in Jalan Bukit Merah, right next to IKEA. It comprises a six-storey retail mall on top of which is a 13-storey hotel (Park Hotel Alexandra). Artist's impression.For more on the business fundamentals of Chip Eng Seng, you can view the numerous comments in this forum thread.
Despite a robust outlook for the company and its shares trading at a substantial discount to RNAV, curiously, a substantial shareholder, Tan Yong Keng, has pared down his stake in Chip Eng Seng.
In a March 23 filing, the company said Mr Tan's deemed interest has plunged from 7.97% (50,179,000 shares) to 4.98% (31,187,500 shares).
The changes in his interest took place between 29 Sept 2014 and 23 March 2015.
Another curious development was the resignation of the CEO-cum-deputy chairman, Raymond Chia, on 31 Dec 2014.
Mr Chia is closely related to the controlling Lim family, as a son-in-law, nephew-in-law and husband.
His successor has yet to be named. Is it Hoon Tai Meng, the executive director?
All the company said in an announcement was: "Mr Chia will stay on till 31 March 2015 to assist in the transition of his duties to Mr Hoon Tai Meng, the Executive Director of the Company."
This is a matter that could come up at the AGM on 23 April.
But all told, shareholders would toast the management for the business performance to date and the special dividend of 2 cents a share in addition to the ordinary dividend of 4 cents.
And there's the opening of the company's maiden retail mall and hotel in Singapore to look forward to soon.
