Broker: CGS International
Date of Report: April 23, 2026
Excerpt from CGS International report.
Report Summary
Stock: Ever Glory United Holdings (EGUH SP)
Action: Add (BUY)
Target Price: S\$1.13 (up from S\$0.90)
Current Price: S\$0.955
Upside: 18.3%
Key Idea: Ever Glory United Holdings is expected to secure more significant order wins by early FY27, notably for mega infrastructure projects such as Changi Terminal 5 (potential contract >S\$500m). The company benefits from a robust tender pipeline (>S\$4bn), a supportive pricing environment, and locked-in input costs that protect margins despite global cost pressures.
Highlights:
- Raised order win assumption for FY27 to S\$650m, citing momentum in public infrastructure tenders and a limited pool of qualified M&E contractors in Singapore.
- Blended gross profit margin (GPM) forecast lifted to 15.8-16.5% for FY26-28, reflecting line-by-line consolidation of higher-margin joint operations and improved pricing discipline.
- Core EPS CAGR projected at 23% from FY25-28, underpinned by earnings resilience and expanding order book.
- Re-rating catalysts: stronger-than-expected order wins, margin expansion, share buybacks, and accretive M&As.
- Key risks: unexpected input cost escalation and project delays.
- EGUH will issue a 1-for-4 bonus share by end-April 2026. Post-issuance, the fair value adjusts to S\$0.90, and share price to ~S\$0.76, but the investment thesis remains intact.
Ticker: EGUH SP
Recommendation: Maintain Add (BUY) with a higher target price of S\$1.13.
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
