BRC Asia - UOB Kay Hian 2024-09-10: Soft 3QFY24 Results; Expect A Strong Finish To FY24

BRC Asia - Soft 3QFY24 Results; Expect A Strong Finish To FY24

Published:
BRC Asia (SGX:BEC) | SGinvestors.ioBRC Asia (SGX:BEC)
  • BRC Asia (SGX:BEC)'s 9MFY24 financial performance fell short of our expectations, with revenue at S$1,140m (-3.1% y-o-y) and core net profit (excluding an S$16.5m gain from the disposal of its Maldives associate) at S$56.1m (+15.0% y-o-y), representing 65.8% and 63.3% of our full-year estimates respectively.
  • - Read this at SGinvestors.io -

9MFY24 results below our expectations, dragged by a soft quarter.

  • The weaker-than-expected 9MFY24 results were largely due to a soft 3QFY24, with revenue and core net profit declining to S$381.7m (-17.0% y-o-y) and S$17.6m (-22.0% y-o-y) respectively. This was primarily due to slower project execution and deliveries, as delays across both the private and public sectors came on a shortage of engineering resources and delays in inspection processes.
  • - Read this at SGinvestors.io -

Short-term outlook shows promising signs of recovery.

  • In early-4QFY24, BRC Asia observed encouraging signs of operational improvements, marked by a gradual alleviation of labour shortages. This has helped projects gain momentum, with increased movement in project executions leading to improved project offtake rates.
  • Coupled with a backlog of delayed projects and a robust pipeline, we reckon that this would lead to stronger earnings growth moving into 4QFY24.

Robust growth in Singapore’s construction sector…

  • 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 | Heidi Mo UOB Kay Hian | https://research.uobkayhian.com/ 2024-09-10



Previous report by UOB:
2024-06-12 BRC Asia - Strong Results 1HFY24 As Margins Expand.

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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