Chip Eng Seng

[yawnyawn]

I took a brief look at the financial ratios. Should there be a cause of concern that the DE ratio is on the rise?

Or is it normal for construction/property businesses?

From AR2013,

Borrowings
Total borrowings grew from $461.8 million to $768.5 million on the back of loans taken up to finance property development projects and for the purchase of investment properties. The increased borrowings will also be used to fund working capital purposes during the current financial year.

CES bought an investment property at Chin Swee Rd. Cash flows from the various projects will be coming in over the next 2 years as they TOP and loans will be repaid. The problem is with Fulcrum where sales have been slow and with TM in Australia as I understand there are some issue with the demolition of existing building.

I think Sumer had an article in nextinsight which gave a good update on the company's recent AGM.
http://www.nextinsight.net/index.php/sto...-and-spore

Yes I think it is normal for developers to use OPM to purchase land banks and repay them when project TOP. What matters is the project sells well and they earn a good margin on it.