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NRA Capital Pte Ltd

Written by: Jacky Lee

Tuesday 3 Sep 2013

Chasen Holdings – press release

More order secured

Chasen adds S$9.1m worth of new contracts and expects a good year ahead

Singapore, 2 September 2013 – SGX Mainboard-listed Chasen Holdings Limited has secured a total of four projects worth approximately S$9.1m by its subsidiaries from the Technical & Engineering business since 1st July 2013.

The nature of these projects ranges from:

  • Design, fabricate, supply and install steel structure and pipe racks for a pharmaceutical manufacturing plant in Tuas;
  • Produce tower mounted amplifier and device, and machining of telecommunication components for two telecommunication manufacturers based in Suzhou, PRC;
  • Design, supply, erection, and dismantle of metal scaffolding for building retrofitting and construction projects within Singapore;
  • Addition and alteration works for air-conditioning and mechanical ventilation improvement project for a fragrance and flavor manufacturing facility in Woodlands;
  • Servicing and maintenance, repair and replacement of parts and minor works to air conditioning, mechanical and ventilation systems at island-wide facilities belonging to a local telco.

The duration of these projects varies from two months to 30 months. Commenting on the group’s latest project wins, Mr. Low Weng Fatt, Managing Director and CEO of Chasen said, “Apart from the relocation projects gaining traction since the beginning of the year, we are also seeing a good number of projects coming on stream from our Technical & Engineering business segment.”

Going forward, the group believes that the commencement of major relocation projects in PRC, Malaysia and Vietnam, which was reflected in the recent quarterly results, is expected to continue making an impact for the rest of the financial year. In addition, the group expects the momentum to continue and should see more contract wins from both its Relocation and Technical & Engineering business segments over the remaining months of the financial year. Barring unforeseen circumstances, the group expects to be profitable for FY2014.


We maintain our earnings forecast and Neutral recommendation for the time being given that the new orders are already included in our earnings estimates. Our short term fair value remains at S$0.35, still pegged at 10 PER FY03/14. However, we see potential re-rating if the group is able to continue securing more orders. We are also looking at the potential from its water treatment business and cleanroom services, if execution goes well. They will start contributing in 4QFY03/14.


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