Broker: CGS International
Date of Report: June 5, 2026
Excerpt from CGS International report.
Report Summary
- Stock: Pan-United Corp Ltd (PAN SP)
- Action: Add (Reiterate Add)
- Target Price: S\$1.85 (previously S\$1.55)
- Current Price: S\$1.47
- Upside: 25.9%
- Key Investment Idea: Pan-United is the largest ready-mixed concrete (RMC) player in Singapore (40% market share), with strong exposure to infrastructure and construction tailwinds. Most contracts are on variable/indexed pricing, allowing PAN to pass on cost increases and protect margins, unlike peers with more fixed-price contracts.
- Financial Strength: Net cash position remains robust at S\$93m (end-FY26F), supporting high dividend payout (60% payout ratio forecast for FY26F, with 50% YoY DPS growth).
- ESG Leadership: Market leader in low-carbon and specialised concrete solutions, aiming for 100% low-carbon concrete by 2030 and carbon-neutrality by 2050. Over 60% of sales volume is already from low-carbon concrete.
- Risks: Main downside risks are counterparty credit risks and potential slowdown in project offtake volumes.
- Valuation: TP based on 9x FY27F EV/EBITDA, 10% above closest peer due to market leadership and strong ESG position.
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
