Reclaims Global Limited: Resilient Earnings and Strategic Positioning Amid Singapore’s Multi-Billion Construction Boom

Key Highlights from Reclaims Global’s Latest Investor Update

Reclaims Global Limited (“Reclaims Global”) is making headlines with its robust financial performance, strong dividend track record, and strategic positioning to capitalize on Singapore’s multi-billion-dollar construction boom and coastal protection initiatives. Here’s an in-depth look at the company’s latest developments, future plans, and factors that could impact its share price.

1. Robust Financial Performance and Dividend Policy

• Consistent Profitability: Reclaims Global has maintained a track record of profitability since its listing, with FY2025 net profit reaching S\$5.567 million, a significant jump from S\$1.516 million in FY2024 and S\$4.858 million in FY2022.
• Strong Revenue Growth: Revenues for 1H2026 climbed to S\$21.8 million, up from S\$19.0 million in 1H2025, driven mainly by higher demand for excavation services.
• Dividend Reliability: The company has paid out at least S\$0.01 per share as dividends over the past two financial years, with a payout ratio of 28.2% in FY2025 and 103.7% in FY2024. The interim dividend for 1H2026 is 0.5 SG cents per share.
• Zero Borrowings and Strong Cash Position: Reclaims Global boasts a strengthened balance sheet with zero borrowings and a cash and cash equivalents position of S\$18.5 million as of 31 July 2025.
• Net Asset Value: The NAV stands at 27.5 SG cents per share as at 31 July 2025.

2. Integrated and Synergistic Business Model

• Three-Pronged Operations: The group operates across recycling (C&D waste into recycled aggregates), excavation services, and logistics & leasing, supported by a versatile fleet of 150 machineries and tipper trucks.
• Eco-Friendly Credentials: Reclaims Global holds key accreditations like Bizsafe STAR and Singapore Green Label for recycled aggregates, positioning it as a sustainable leader in construction services.
• Digital Transformation: Recent successful implementation of ERP and HRMS systems, plus GPS-enabled fleet management, have enhanced productivity and operational efficiency.

3. Strategic Positioning for Growth Opportunities

• Singapore’s Construction Boom: The Building and Construction Authority (BCA) forecasts total construction demand at S\$47–53 billion in 2025, and S\$39–46 billion annually from 2026 to 2029. This multi-year, multi-billion pipeline is a major growth driver for Reclaims Global.
• Coastal Protection Initiatives: Singapore’s S\$100 billion coastal protection plan, which requires extensive excavation for land preparation and stabilization, positions Reclaims Global’s earthwork services as a crucial long-term growth proxy.
• Land Intensification Allowance Scheme: The expanded LIA scheme (2026–2030) encourages industrial land optimization, incentivizing capital investment in construction and infrastructure and further boosting sector activity.

4. Track Record and Competitive Strengths

• Established Reputation: Over 15 years serving public and private sectors, with more than 180 completed projects, including high-profile demolition and reinstatement works.
• Management Expertise: Led by Executive Chairman Chan Chew Leh and Executive Director Tan Kok Huat, with over 50 years of combined industry experience, supported by a seasoned management team.
• Strong Customer and Supplier Relationships: Long-standing partnerships with clients and an established transport network enhance operational flexibility and resilience.

5. Forward-Looking Strategies and Potential Price-Sensitive Developments

• Focus on Public Sector Projects: The company is targeting larger-scale public projects, providing better revenue visibility and longer-term contracts.
• BCA Workhead Upgrade and Fleet Expansion: Plans to upgrade BCA workhead and expand fleet size will enable access to larger and more lucrative projects.
• Diversification and Expansion: Intent to diversify into construction-related activities and property development, leveraging its track record and pursuing new business opportunities via acquisitions, joint ventures, or strategic alliances. The industry’s aging ownership structure may create attractive acquisition opportunities for Reclaims Global.

6. Risks and Considerations for Shareholders

• Forward-Looking Statements: Investors should note that the company’s outlook includes forward-looking statements and targets, subject to risks and uncertainties from market demand, regulatory changes, and competitive dynamics.
• Dividend Sustainability: While dividend payouts have been consistent, future dividends are subject to profitability and business performance.
• Sector Sensitivity: The construction sector is cyclical and sensitive to macroeconomic factors, government policy, and project delays, which could impact future earnings and share value.

Conclusion: Why This Matters for Investors

Reclaims Global is strategically positioned to benefit from Singapore’s unprecedented construction and coastal protection investments, with a resilient financial profile, proven track record, and robust growth pipeline. The focus on public sector projects, fleet expansion, and diversification into new construction activities could unlock significant shareholder value and potentially drive share price appreciation in the medium term. Investors should monitor upcoming project awards, expansion moves, and any acquisition announcements, as these could be price-sensitive events.

Disclaimer:

This article is for informational purposes only and does not constitute investment advice or a recommendation to buy, sell, or hold any securities. Forward-looking statements are subject to risks and uncertainties. Past performance is not indicative of future results. Investors should conduct their own due diligence or consult a financial advisor before making investment decisions.

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