CGS International
May 26, 2025
Pan-United Corp Leads Singapore’s Construction Boom: Strong Earnings, Green Growth, and Sector Peer Analysis
Introduction: Riding Singapore’s Construction Upswing
Singapore’s building materials sector is set for robust growth, spearheaded by Pan-United Corp Ltd (PanU). As the nation embarks on a new wave of infrastructure and institutional projects, PanU’s strategic positioning, technological leadership in low-carbon concrete, and strong financial footing make it a compelling play for investors. This comprehensive analysis delves into PanU’s outlook, its ESG initiatives, and a full comparative review of regional peers, as reported by CGS International on May 26, 2025.
Singapore Construction Demand Surges: A Tailwind for Pan-United
– The Building and Construction Authority (BCA) projects total construction demand in Singapore to reach S\$47bn-53bn in 2025, marking a 6–20% year-on-year increase from S\$44bn in 2024. – Demand is forecasted to remain elevated at S\$39bn-46bn annually through 2026–2029. – Notably, institutional and civil engineering projects will comprise about 52% of 2025’s demand, up from 42% in 2024. – PanU, with a commanding 40% market share in concrete, is well-positioned to benefit from this shift toward more specialized, higher-margin projects. – Revenue from these segments is projected to support double-digit earnings growth, with FY26F–FY27F core EPS estimates raised by 12-19% due to higher sales volume.
Favorable Project Mix: Institutional and Civil Engineering Growth
– Institutional & Others segment demand is expected to grow 40% in 2025, driven by major airport (T5 Development), educational, and healthcare projects. – Civil Engineering Work is forecasted to rise 35%, spurred by MRT extensions, road, sewerage, and Tuas Port development. – Residential (Public) projects see a 20% increase, although Residential (Private) and Commercial segments face contractions of 29% and 19% respectively. – Industrial projects are expected to rise by 10%, with new data centers and water reclamation facilities contributing to the momentum.
| Project Type |
2024A (S\$bn) |
2025F (Lower) (S\$bn) |
2025F (Upper) (S\$bn) |
YoY Change |
Key Drivers |
| Residential (Public) |
7.3 |
8.2 |
9.2 |
+20% |
HDB BTO, student hostels, dormitories |
| Residential (Private) |
8.0 |
5.5 |
6.0 |
-29% |
Condominiums, landed housing |
| Commercial |
5.4 |
3.6 |
5.1 |
-19% |
MBS IR2, hotel refurb, Tanglin SC |
| Industrial |
4.9 |
5.1 |
5.6 |
+10% |
Biomedical, LNG terminal, data centers |
| Institutional & Others |
11.6 |
15.6 |
17.0 |
+40% |
Airport T5, education, hospitals |
| Civil Engineering Work |
7.0 |
9.0 |
10.0 |
+35% |
MRT, Tuas Port, roads |
| Total |
44.2 |
47.0 |
52.9 |
+13% |
|
Major Infrastructure Initiatives: Rail Projects and Beyond
– The Land Transport Authority’s Master Plan 2040 includes feasibility studies for two new rail lines (Seletar and Tengah Lines), plus the phased West Coast Extension connecting the Jurong Regional Line to the Cross Island and Circle Lines. – These projects are expected to extend construction visibility through the early 2040s, supporting sustained demand for civil engineering works.
Championing Low-Carbon Concrete: PanU’s ESG Leadership
– PanU has been a pioneer, offering low-carbon concrete since 2019 and investing in R&D to broaden its sustainable product range. – More than 50% of 2024 sales volume came from low-carbon solutions, with proprietary PanU CMC+ used in high-profile projects such as Tuas Port and the North-South Corridor. – The company aims to offer exclusively low-carbon concrete by 2030, carbon-neutral products by 2040, and to achieve carbon neutrality as a company by 2050. – PanU is the only Singapore concrete firm awarded the “Leader” certification from the Singapore Green Building Council, boosting its credentials for future project wins as sustainability becomes a core selection criterion.
Financial Performance: Strong Growth and Upward Revisions
– Target price raised to S\$0.82 (from S\$0.75), reflecting higher FY26F EBITDA and a re-rating to 5.8x EV/EBITDA, in line with historical upcycle averages. – Reiterate Add rating, with strong volume growth and margin resilience as catalysts. – Downside risks: credit risk, project delays, or volume slowdowns affecting ready-mix concrete (RMC) sales and margins.
| Year Ending Dec |
2023A |
2024A |
2025F |
2026F |
2027F |
| Revenue (S\$m) |
774 |
812 |
862 |
973 |
1,044 |
| Operating EBITDA (S\$m) |
68.7 |
76.5 |
81.0 |
90.5 |
95.8 |
| Net Profit (S\$m) |
35.6 |
40.9 |
44.1 |
51.2 |
55.2 |
| Core EPS (S\$) |
0.051 |
0.060 |
0.063 |
0.073 |
0.079 |
| Core EPS Growth (%) |
30.0 |
17.8 |
4.6 |
16.2 |
7.8 |
| Dividend (S\$) |
0.023 |
0.030 |
0.032 |
0.037 |
0.039 |
| Dividend Yield (%) |
3.26 |
4.26 |
4.54 |
5.25 |
5.53 |
| EV/EBITDA (x) |
6.52 |
5.26 |
5.00 |
4.29 |
3.77 |
| ROE (%) |
16.1 |
16.9 |
16.0 |
17.1 |
16.9 |
PanU’s net cash per share is projected at S$0.19 by 2027, with a payout ratio near 50%.
Strong free cash flow generation supports both dividends and balance sheet flexibility.
Peer Comparison: Singapore and Regional Building Material Companies
| Company |
Bloomberg Ticker |
Rec. |
Price (lcl curr) |
Target Price |
Market Cap (US\$m) |
P/E 2025F |
P/E 2026F |
EPS CAGR 25-26F |
P/BV 2025F |
P/BV 2026F |
ROE 2025F |
EV/EBITDA 2025F |
EV/EBITDA 2026F |
Div Yield 2025F |
| BRC Asia Ltd |
BRC SP |
Add |
3.12 |
3.40 |
666 |
10.3 |
10.0 |
6.2% |
1.68 |
1.58 |
16.8% |
6.8 |
6.3 |
6.4% |
| Hong Leong Asia |
HLA SP |
Add |
1.17 |
1.75 |
681 |
8.9 |
7.7 |
14.3% |
0.81 |
0.76 |
9.3% |
5.9 |
5.2 |
3.9% |
| Pan-United Corp Ltd |
PAN SP |
Add |
0.71 |
0.82 |
383 |
11.2 |
9.6 |
12.2% |
1.72 |
1.58 |
15.5% |
5.2 |
4.3 |
4.5% |
| Indonesia Peers |
| Indocement |
INTP IJ |
Add |
5,775 |
7,700 |
1,291 |
10.7 |
10.0 |
1.4% |
0.89 |
0.85 |
8.6% |
4.2 |
3.8 |
2.9% |
| Semen Indonesia |
SMGR IJ |
Add |
2,720 |
3,500 |
1,188 |
22.6 |
19.7 |
13.2% |
0.44 |
0.44 |
2.0% |
5.0 |
4.7 |
3.0% |
| Malaysia Peers |
| Hume Cement Industries Bhd |
HUME MK |
NR |
2.85 |
na |
487 |
9.5 |
8.3 |
4.6% |
na |
na |
30.7% |
5.8 |
5.2 |
na |
| Malayan Cement Bhd |
LMC MK |
Add |
4.95 |
7.10 |
1,624 |
10.4 |
10.1 |
11.2% |
0.97 |
0.91 |
9.4% |
6.7 |
6.1 |
2.4% |
| Thailand Peers |
| Siam Cement |
SCC TB |
Reduce |
172 |
115 |
6,388 |
26.5 |
26.7 |
25.1% |
0.59 |
0.58 |
2.2% |
12.6 |
12.8 |
2.9% |
| Siam City Cement PCL |
SCCC TB |
NR |
152 |
na |
1,394 |
11.1 |
10.4 |
-9.9% |
1.28 |
1.24 |
12.1% |
7.2 |
6.9 |
6.8% |
Singapore peers (BRC Asia, Hong Leong Asia, PanU) trade at 10.1x 2025F P/E on average, with ROE averaging 13.9% and dividend yields around 5.9%.
PanU’s metrics are competitive within the group, with a forecasted 2025F P/E of 11.2x, 15.5% ROE, and a 4.5% yield.
ESG Highlights: Benchmarks in Sustainability
– PanU is the biggest sustainable RMC supplier in Singapore, winning large contracts owing to its green credentials. – Since 2017, PanU has ramped up lower-carbon material usage and integrated CarbonCure technology across three batching plants. – In 2022, PanU became the first in Asia to provide on-demand Environmental Product Declaration (EPD) certificates, enhancing transparency and accountability. – These ESG milestones poise PanU for further investor interest and premium project wins as the market pivots towards green construction.
Shareholder Structure and Recent Performance
– Major shareholders: Ng family (60%), Dimensional Fund Advisors (0.4%), Lee Cheong Seng (0.4%). – PanU’s share price delivered 58.4% absolute return over 12 months, outperforming the market by 27.5%.
Conclusion: Pan-United Corp—A Strategic ESG and Earnings Play in Singapore’s Construction Cycle
With its market dominance in ready-mix concrete, innovative sustainability credentials, and exposure to Singapore’s infrastructure boom, Pan-United Corp Ltd stands out as a top pick for investors seeking growth, ESG alignment, and resilient dividends in the building materials sector. The company’s strong financials, upward earnings revisions, and clear strategies position it well to capture the next wave of construction demand in Singapore and beyond.
