Broker: CGS International
Date of Report: March 31, 2026
Excerpt from CGS International report.
Report Summary
- Sector Call: Overweight on Singapore Construction and Materials sector.
- Top Picks and Actions:
- BRC Asia Ltd (BRC SP): ADD. Target Price: S\$5.40 (last close S\$4.69). Key strengths: 100% steel hedging strategy, dominant market share, diversified customer base, earnings resilience.
- Soilbuild Construction Group (SOIL SP): ADD. Target Price: S\$1.20 (last close S\$0.96). Key strengths: S\$1.19bn order book, support from mega projects, multi-year earnings visibility, upside from potential precast spin-off.
- Tiong Woon Corp (TWC SP): ADD. Target Price: S\$1.29 (last close S\$0.95). Key strengths: Heavy-lift solutions provider with low fuel cost exposure (6% of COS), beneficiary of regional infrastructure plans.
- Key Idea: Prolonged high oil and raw material prices could trigger contract renegotiations and margin compression, but top picks are selected for their earnings resilience, cost management, and contract structures.
- Sector Risks: Prolonged high oil prices, rising material and labour costs, project delays.
- Upside Catalysts: Easing geopolitical tensions, lower oil prices, strong project offtake, and M&A activity.
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
