Report Summary

• Ever Glory United Holdings (EGUH) is poised for strong growth following its acquisition of Guthrie Engineering, which significantly expands its project capacity and enables bidding for larger, high-profile public sector contracts.
• The company’s order book is forecast to surge from S\$110m in FY24 to S\$660m by end-2025 and potentially S\$1bn by 2026, driven by major public infrastructure and healthcare projects in Singapore’s construction upcycle.
• Net profit is projected to rise sharply from S\$9m in FY24 to S\$14m in FY25, S\$24m in FY26, and S\$27m in FY27, implying a robust 44% CAGR over FY24-27.
• Key catalysts include sizeable new order wins, margin expansion from cost synergies and efficiency, and successful integration of Guthrie. Risks include project delays, cost overruns, and market cyclicality.
• Ever Glory’s healthy balance sheet, sector tailwinds, and ability to tender for mega projects position it well for sustained earnings growth, with a target price of S\$0.87 (12x FY27F P/E), representing a 22% upside from the current share price.
• The company is strengthening its ESG framework, focusing on climate disclosures, workforce development, and governance, aiming to meet future sustainability standards and support long-term resilience.
• While integration risks and margin pressures exist, the acquisition was made at a discount to valuation, offering potential for significant earnings uplift if executed well.
• No dividend payout is expected for FY25-27 as the company prioritizes growth and expansion.
• Management comprises experienced industry leaders, and the group has a proven track record of scaling operations profitably.
• Ever Glory remains exposed to industry cyclicality and competition but is well positioned to capture Singapore’s infrastructure upcycle and explore regional expansion opportunities.