Report Summary

• Ever Glory United Holdings (EGUH) is set to announce 2H25 results with revenue and profit expected to more than double year-on-year, driven by the inclusion of Guthrie Engineering and stable margins.
• Order book and tender pipeline remain robust, exceeding S\$4bn, with significant opportunities from major public sector projects such as Changi Terminal 5, healthcare facilities, and MRT extensions.
• Management is committed to a high dividend payout, raising FY25-27F payout assumptions to 20-50%, supported by strong operating cash flow and a net-cash position.
• FY25/FY26 EPS forecasts were cut due to revenue recognition changes, but FY27F expectations have been raised, highlighting longer-term earnings visibility.
• Copper price spikes have limited impact on current project margins but could affect future tender competitiveness.
• Ever Glory has strengthened its ESG strategy, focusing on climate-related disclosures, workforce development, and governance improvements.
• Target price remains at S\$0.87, based on sector average valuation multiples, with key upside from order wins and margin expansion; downside risks include cost escalation and contract cancellations.