BBR Asia (BRC SP)
- Recommendation: HOLD
- Target Price: S$2.29
- Current Price: S$2.29
- Broker: UOB Kay Hian
- Date of Recommendation: September 10, 2024
Performance Overview: BBR Asia posted soft results for 3QFY24, which led to a downgrade from Buy to Hold. While the company’s performance has been subdued, it is expected to finish FY24 on a strong note.
Investment Thesis:
- Challenging Quarter: BBR Asia’s performance in 3QFY24 was below expectations due to project delays and higher costs, but management expects a rebound in 4QFY24.
- Industry Position: As a leader in the construction and engineering sector, BBR Asia is well-positioned to benefit from Singapore’s infrastructure spending. However, macroeconomic challenges such as inflation and higher material costs pose risks.
Valuation and Risks:
- With the stock trading at its target price, there is limited upside in the near term. A strong finish to FY24 could improve sentiment, but cost pressures remain a key concern.
Thank you
