BRC Asia - UOB Kay Hian 2022-12-02: FY22 Above Expectations, Record Year & Special Dividend

BRC Asia - FY22 Above Expectations, Record Year & Special Dividend

Published:
BRC ASIA LIMITED (SGX:BEC) | SGinvestors.ioBRC ASIA LIMITED (SGX:BEC)
  • BRC Asia reported posted record-high earnings of S$90.2m (+92% y-o-y), backed by higher delivery volumes and elevated steel prices. Gross and net margins also expanded as steel prices started to fall, leading to net reversal of provisions.
  • - Read this at SGinvestors.io -
  • Maintain BUY recommendation on BRC Asia with a higher target price of S$2.42 (S$2.00 previously).

BRC Asia's FY22 Results surpassed expectations.

  • BRC Asia (SGX:BEC) reported record-high FY22 revenue and net profit of S$1,699.3m (+45% y-o-y) and S$90.2m (+92% y-o-y) respectively, forming 94% and 115% of our full-year estimates, surpassing our expectations. Similar to 9MFY22, stronger delivery volumes coupled with elevated steel rebar prices boosted the group’s earnings.
  • - Read this at SGinvestors.io -
  • Margin expansion. In line with higher revenue, BRC Asia's FY22 gross profit also grew 87% y-o-y while gross margins expanded 2.0ppt y-o-y. This is largely due to lower steel prices in 2HFY22 which led to a net reversal of provisions for onerous contracts at S$12.8m compared to a provision of S$45.3m in FY21.
  • Moving forward, management noted that the group expects further reversal of provisions for onerous contracts as steel prices continue to fall, boosting margins.
  • Resolute orderbook. BRC Asia’s orderbook remains robust, standing at S$1.4b, higher than the S$1.14b at end-3QFY22. We expect BRC Asia to deliver half of its current orderbook in the next 3-4 quarters as local construction activity ramps up.

Challenging operating environment ahead.

  • Read more at SGinvestors.io.




Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.




Llelleythan Tan UOB Kay Hian Research | https://research.uobkayhian.com/ 2022-12-02



Read also UOB's most recent report:
2023-12-12 BRC Asia - Strong Finish Exceeds Expectations; Upgrade To BUY.

Previous report by UOB:
2023-08-17 BRC Asia - 3QFY23 Results In Line; No Near-Term Catalysts.

Price targets by 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 Dividends & Corporate Actions,
BRC Asia News Articles





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