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 @ https://www.itradecimb.com.sg/.
ONG Khang Chuen CFA CGS-CIMB Research | Kenneth TAN CGS-CIMB Research | https://www.cgs-cimb.com 2022-02-09 2022-02-09
Read also CGS-CIMB's most recent report:
2022-05-12 BRC Asia - Riding On Industry Tailwinds
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Listing of broker reports at BRC Asia Analyst Report.
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