BRC Asia - DBS Research 2022-12-02: Heightened Safety Period A Short Term Blip; Expect A Stronger 2H23

• BRC Asia (SGX:BEC)'s FY22 revenue soared 45% y-o-y to S$1.7bn due to higher volume and prices, largely in line with expectations. The strong revenue growth can be attributed to
  1. higher sales volume, owing to 15.3% higher construction spend of S$28.8bn in FY22 vs S$25.0bn in FY21 and
  2. - Read this at SGinvestors.io -
• BRC Asia's FY22 net profit surged 92% y-o-y to S$90.2m, exceeding expectations. There was an improvement in the gross margin from 7.0% in FY21 to 9.0% in FY22. This was largely due to a net reversal of S$12.8m in provisions for onerous contracts in FY22 vs a provision of S$45.3m in FY21.
• In line with higher gross profit margins, net profit margins also rose by 1.3 percentage points y-o-y in FY22 to 5.3%. With strong revenue growth and an improvement in margins, BRC Asia’s profit reached a record high.
• - Read this at SGinvestors.io -
• Orderbook as at end-September 2022 stands at S$1.4bn vs S$1.2bn in end-September 2021.

BRC Asia - Outlook

Challenges in operating environment to be mitigated by steady construction demand.

• Read more at SGinvestors.io.

Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Read also DBS's most recent report:
2023-05-16 BRC Asia - Anticipating Better Times Ahead.

Price targets by 2 other brokers at BRC Asia Target Prices.

Listing of research reports at BRC Asia Analyst Reports.

Relevant links:
BRC Asia Share Price History,
BRC Asia Announcements,
BRC Asia Dividend Payout Dates & Corporate Actions,
BRC Asia News