Broker Name: OCBC Group Research
Date of Report: 15 January 2026
Excerpt from OCBC Group Research report.
- Report Summary:
- Nordic Group, a Singapore-based global engineering solutions provider, is rated BUY with a fair value of SGD0.59 (37% upside) and an attractive estimated FY26 dividend yield of 4.9%.
- The company’s strong revenue visibility is supported by recent SGD70m contract wins, a robust SGD209m order book, and a strategic shift toward stable maintenance services.
- Nordic’s long-term growth is underpinned by accretive acquisitions, exposure to high-growth sectors (defence, sustainability, technology), and resilient performance across economic cycles in Asia.
- Financials show recovery after macro headwinds, with revenue growth forecasted at 5% for FY25 and 7.6% for FY26, supported by easing rates and industrial rebound.
- Key risks include cyclical downturns, chemical sector headwinds, and potential challenges from inorganic growth, though diversification and prudent management help mitigate these risks.
- Valuation is attractive with potential for P/E re-rating as earnings recover; company’s diversified revenue streams and strong order pipeline offer resilience against external shocks.
- Nordic’s strategic positioning in Singapore, supported by government spending on defence and sustainability, and low tariff exposure, further enhances its competitive advantage.
- Management capability and a history of successful acquisitions provide confidence in sustainable long-term growth.
Above is an excerpt from a report by OCBC Group Research. Clients of OCBC Group Research can be the first to access the full report from the OCBC website: https://www.ocbc.com
