BRC Asia - UOB Kay Hian 2025-03-07: Soft 1QFY25 Results As Margins Compress

BRC Asia - Soft 1QFY25 Results As Margins Compress

Published:
BRC Asia (SGX:BEC) | SGinvestors.io
  • Despite its decent 6.3% dividend yield, we opine that BRC Asia is fully valued at current levels, thus we maintain HOLD but with a higher target price of S$2.76.
  • BRC Asia (SGX:BEC) posted 1QFY25 results that were within our expectations, with headline revenue at S$350.0m (-12.4% y-o-y), gross profit at S$28.7m (-19.0% y-o-y) and PATMI at S$19.5m (+13.9% y-o-y), representing 23%/18%/23% of our full-year estimates respectively and in line with our expectations.

Soft underlying results.

  • - Read this at SGinvestors.io -
  • The lower top-line revenue was largely due to a fall in steel prices and slow project offtake coupled with engineering delays that have hindered project completion. The greater-than-expected fall in 1QFY25 gross profit was largely due to an unfavourable product mix as steel prices dropped. As a result, 1QFY25 gross margin fell 0.7ppt y-o-y to 8.2%.

Solid orderbook.

  • - Read this at SGinvestors.io -
  • BRC Asia’s orderbook remains robust, standing at S$1.5b as at end-1QFY25. We expect the group to deliver half of its current orderbook in the next 3-4 quarters as volumes recover.

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 Research | https://research.uobkayhian.com/ 2025-03-07



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






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