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 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/.



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



Read also UOB's most recent report:
2025-05-26 BRC Asia - 2QFY25 Above Expectations As Margins Expand.

Previous report by UOB:
2025-03-07 BRC Asia - Soft 1QFY25 Results As Margins Compress.

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






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