BRC Asia - CGS-CIMB Research 2022-02-09: A Strong Start To FY22

BRC Asia - A Strong Start To FY22

  • BRC Asia (SGX:BEC)’s 1Q22 (Oct 2021 to Dec 2021) net profit of S$13.3m (+38.8% y-o-y) was above expectations. We remain bullish on construction recovery in 2022F as labour shortage eases.
  • Construction output is set to reach a 6-year high in 2022F, according to BCA, supported by steady construction demand and work backlogs since 2020.
  • BRC Asia is our sector’s top pick. We see it as a key beneficiary of construction activity recovery. BRC Asia also offers a high dividend yield of 6.7%.
  • Reiterate ADD rating on BRC Asia and a target price of S$2.10, based on 1.53x CY22F P/BV (GGM: ROE 14.6%, cost of equity 9.7%, terminal growth 0.5%).

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @

ONG Khang Chuen CFA CGS-CIMB Research | Kenneth TAN CGS-CIMB Research | 2022-02-09
SGX Stock Analyst Report ADD MAINTAIN ADD 2.100 SAME 2.100

Read also CGS-CIMB's most recent report:
2022-05-12 BRC Asia - Riding On Industry Tailwinds

Target prices by 4 other brokers at BRC Asia Target Prices.
Listing of broker reports at BRC Asia Analyst Report.

Relevant links:
BRC Asia Share Price History,
BRC Asia Announcements,
BRC Asia Dividends & Corp Actions,
BRC Asia News Articles


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