Broker Name: KGI Securities (Singapore) Pte. Ltd.
Date of Report: December 17, 2025
Excerpt from KGI Securities (Singapore) report.
Report Summary
- Ever Glory United Holdings Ltd (EGUH) has rapidly transformed from a mid-sized M&E contractor into a leading, integrated engineering group through strategic acquisitions, notably Fire-Guard Engineering (2024) and Guthrie Engineering (2025). These moves have expanded its technical capabilities, licensing, and orderbook, enabling competition for Singapore’s largest infrastructure projects.
- The company is well-positioned to benefit from Singapore’s infrastructure super-cycle, with construction demand projected at S\$47-53bn in 2025. Ever Glory’s orderbook exceeds S\$500mn after the Guthrie acquisition and is targeting S\$700mn by year-end, providing revenue visibility through FY27-28.
- Despite margin pressures, Ever Glory maintains a net cash position and positive operating cash flows, with prudent capital management supporting disciplined growth. The group continues to pay dividends and operates an asset-light model.
- Minor stakes in property projects offer additional upside but remain a small, non-core part of revenue.
- Financial results saw a revenue dip in 1H25 due to project completion cycles, but strong order inflows and the integration of Guthrie Engineering are expected to drive accelerated growth and margin recovery from FY26 onwards.
- KGI initiates coverage with an OUTPERFORM rating and a S\$1.20 target price, reflecting increased earnings power, visible orderbook conversion, and potential margin recovery. The stock trades at a discount to peers despite superior growth prospects.
- Key risks include project execution, cost inflation, competitive tenders, regulatory changes, and macroeconomic uncertainties.
- The company’s financials show robust revenue and net profit growth projections for FY25-27, a strong balance sheet, and high return on equity, supporting its expansion plans and resilience.
Above is an excerpt from a report by KGI Securities (Singapore) Pte. Ltd. Clients of KGI Securities can be the first to access the full report from the KGI Securities website : https://www.kgi.sg/
