BRC Asia - UOB Kay Hian 2023-05-25: Muted 1HFY23 Results In Line With Expectations; No Near-Term Catalysts

• BRC Asia reported lower 1HFY23 earnings of S$26.2m (-34% y-o-y, -48% h-o-h), dragged by lower project contractual offtake and an unfavourable product mix.
• Management noted that Singapore’s construction sector is expected to recover from 3QFY23 onwards, backed by easing of the labour shortage and a strong pipeline of upcoming construction projects. However, with no near-term catalysts as well as compressed volumes in 3QFY23, we maintain HOLD on BRC Asia but with a higher target price of S$1.73.

Muted 1HFY23 results.

• - Read this at SGinvestors.io -
• - Read this at SGinvestors.io -
• BRC Asia declared a lower y-o-y 1HFY23 dividend of 5 cents/share, compared with 6 cents/share in 1HFY22, and implies an annualised FY23 yield of around 6%. See BRC Asia's dividend date.

Lower margins cushioned by reversal of onerous contracts.

• Read more at SGinvestors.io.

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

Read also UOB's most recent report:
2025-03-07 BRC Asia - Soft 1QFY25 Results As Margins Compress.

Previous report by UOB:
2024-12-05 BRC Asia - FY24 Soft Results In Line; Better Outlook Ahead.

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 Dividend Payout Dates & Corporate Actions,
BRC Asia News