Report Summary

• BRC Asia Ltd is expected to benefit from a peak in Singapore construction volumes in FY26F-27F, delivering higher operational and financial leverage, with net profit margins improving to 6.2%-6.4%.
• The company aims to expand its steel product and service offerings locally and abroad, including restructuring its recent Malaysian acquisition and exploring new growth opportunities.
• BRC maintains its dominant 55-60% share of the Singapore steel market due to its strong track record and focus on quality and safety, even as new entrants increase competition.
• Financials are robust with rising revenues, stable margins, improved net gearing, and consistent dividend payouts; downside risks include economic slowdown and counterparty credit risks.
• ESG highlights include a focus on workplace safety, material efficiency, and managing the regulatory risks associated with a largely foreign workforce.