Excerpt from CGS International report.

Report Summary
• Ever Glory United Holdings (EGUH) delivered FY25 core net profit of around S\$13.6m (+52% yoy), in line with estimates, with a notable positive surprise from stronger gross profit margin (GPM) due to tighter cost control, better procurement, and the Guthrie acquisition.
• The broker upgrades EGUH’s GPM assumption to 15% for FY26-28F, reflecting improved execution, disciplined tendering, and cost management, supporting higher earnings forecasts.
• Order book reached S\$730m at end-FY25 with S\$508m in new wins; tender pipeline exceeds S\$4bn, including mega projects like LTA and Changi Terminal 5.
• Dividend payout for FY25 was 22% (below forecast), with management emphasizing capital preservation and a bonus share issuance planned; FY26-28F payout is projected at 20%.
• Target price raised to S\$0.90 (from S\$0.87), based on 12x FY27F P/E; potential re-rating catalysts include margin expansion, strong order wins, and accretive M&As, while key risks are cost escalation and contract cancellations.
• ESG integration has strengthened, with enhanced TCFD-aligned disclosures and plans to measure Scope 3 emissions by FY26, though workforce and safety metric transparency can improve further.