Broker Name: CGS International
Date of Report: December 1, 2025
Excerpt from CGS International report.
- Report Summary
- BRC Asia is set to benefit from peak construction volumes in Singapore over FY26F-27F, which are expected to drive operational and financial leverage, with net profit margins rising to 6.2%-6.4%.
- The company aims to expand its steel products and services both locally and overseas, maintaining its dominant market share despite growing competition.
- BRC Asia’s strong contract fulfillment and safety track record enable it to win tenders even without being the lowest bidder, supporting continued market leadership.
- Financials show stable revenue growth, improving margins, robust dividend yield (around 5%), and stronger balance sheet with reduced net gearing.
- Key risks include counterparty credit issues and a potential slowdown in construction demand; re-rating catalysts are higher sales volumes and earnings-accretive M&A.
- ESG highlights: focus on product quality, material efficiency, and workplace safety, though the company depends heavily on foreign labor, which poses regulatory risks.
- Target price set at S\$4.90 (upside of ~25%), with a positive outlook on the Singapore construction upcycle and initiatives supporting small- to mid-cap stocks.
above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgs-cimb.com/
