Brokers' take

Chip Eng Seng Corp | Accumulate Target price: S$0.81 Feb 21 close: S$0.715 Phillip Securities Research, Feb 21

CES has pre-launched a 720-unit condominium development project, Grandeur Park Residences, last weekend on Feb 18, 2017. The development is located in the Tanah Merah district along New Upper Changi Road and approximately 200 metres away from the Tanah Merah MRT Station. We are expecting the take up rate for the development to be strong as majority of these units are smaller in sizes, translating to a lower purchase price which will aid homebuyers to secure financing in the face of the 60 per cent total debt servicing ratio cooling measure. We expect average selling price (ASP) at the development to fall in the region of S$1,350. As the site does not require the prefabricated prefinished volumetric construction system and is able to generate cost savings by taking the construction works in-house, we are optimisti…