Broker Name: UOB Kay Hian
Date of Report: Thursday, 19 February 2026
Excerpt from UOB Kay Hian report.
Report Summary
- Huationg Global is a leading, founder-led civil engineering contractor in Singapore, graded BCA A1, with over 40 years of experience and a strong S\$512 million orderbook, giving it multi-year earnings visibility.
- The company is net cash positive (S\$56m, about 35% of market cap), owns a large fleet of machinery, manufactures key materials in-house, and has resumed dividends, indicating robust financial health and shareholder returns.
- Current trading valuation is low at 8x 2026F PE (or 5x ex-cash), which is a substantial discount to peers, making it undervalued with potential for re-rating, especially with a possible transfer to the SGX Mainboard.
- Huationg is well-positioned to benefit from Singapore’s ongoing public infrastructure boom, with exposure to major national projects like Changi Airport Terminal 5, MRT expansions, and Tuas Port.
- Margins are stable, supported by vertical integration, disciplined capex, and a focus on early-stage infrastructure works, with projected annual earnings growth of about 10% through 2027.
- A recent institutional-backed share placement and potential Mainboard transfer could further support visibility and valuation upside.
- Risks include reliance on public sector spending, execution challenges on large projects, labour cost pressures, and industry-wide regulatory and cost uncertainties.
above is an excerpt from a report by UOB Kay Hian. Clients of UOB Kay Hian can be the first to access the full report from the UOB Kay Hian website : https://www.uobkayhian.com/
