Phillip Securities analyst Yik Ban Chong upgraded the rating on BRC Asia Limited to a Buy today, setting a price target of S$5.10.
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Yik Ban Chong has given his Buy rating due to a combination of factors that highlight BRC Asia Limited’s strong financial and operational performance. The company’s adjusted profit after tax and minority interest (PATMI) saw a significant increase of 36% year-over-year in the second half of 2025, driven by a substantial rise in steel rebar delivery volumes. This growth in delivery volumes is attributed to the robust demand from construction projects, marking the highest increase since the second half of 2023.
BRC Asia’s impressive order book, valued at S$1.9 billion, reflects a 36% year-over-year growth and is significantly higher than its five-year historical average. This growth is fueled by major contracts, including the S$570 million T5 contracts awarded in the third quarter of 2025. Furthermore, the company’s financial health has improved with a net cash position of S$6.2 million, a turnaround from a net debt position in the previous year. Despite a decline in steel rebar prices, the anticipated increase in delivery volumes is expected to sustain revenue growth, supporting the Buy rating with an upgraded target price of S$5.10.
In another report released today, CGS-CIMB also reiterated a Buy rating on the stock with a S$4.90 price target.