- Singapore’s Building and Construction Authority (BCA) has recently raised its FY26E projection for construction demand from S$39-46b in nominal terms to S$47-53b.
Construction demand in Singapore is expected to remain firm in 2026.
- The upcycle is supported by major multi-year investments into transport infrastructure (such as Tuas Mega Port, Changi Airport Terminal 5, and the expansion of the existing rail network), hospitality projects, as well as public and private housing developments. We expect this to bode well for Hong Leong Asia (SGX:H22)’s Building Materials division.
- - Read this at SGinvestors.io -
Further value unlocking underway.
- Hong Leong Asia announced on 27 Jan 2026 that its 48.7%-owned subsidiary China Yuchai International Ltd (CYI) has submitted an application for the proposed listing of its principal subsidiary, Guangxi Yuchai Marine and Genset Power Co., Ltd. (MGP), on the Hong Kong Stock Exchange.
- - Read this at SGinvestors.io -
- Given the vast potential of the business, Hong Leong Asia (through CYI) is expected to retain significant control over MGP post-listing, with the injection of fresh capital likely deployed to support future development of its genset offerings. The spin-off is subject to regulatory approval, and there is no certainty or assurance that it will materialise in due course.
Revised fair value estimate of S$3.50.
- Read more at SGinvestors.io.
