Yik Ban Chong, an analyst from Phillip Securities, maintained the Buy rating on Pan-United Corporation Ltd.. The associated price target is S$1.34.
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Yik Ban Chong has given his Buy rating due to a combination of factors that highlight Pan-United Corporation Ltd.’s strong financial performance and strategic advancements. The company’s revenue and profit after tax and minority interests (PATMI) for the first half of 2025 were in line with expectations, showing a 4% increase in revenue year-over-year, driven by higher volumes of ready-mixed concrete. This growth, coupled with a 2.8 percentage point increase in gross profit margins, was attributed to lower costs from upstream facilities in Malaysia, resulting in an 11% rise in PATMI.
Furthermore, Pan-United’s investment in its AiR Digital command center has optimized operations, leading to a 0.9 percentage point expansion in EBITDA margins. The company’s strategic projects, such as the S$430 million contract for Changi Airport Terminal 5, enhance its project visibility and are expected to contribute significantly to revenue over the next five years. Additionally, the Building and Construction Authority’s forecast of increased demand for ready-mixed concrete supports a positive outlook for the company’s growth. These factors, along with a lowered weighted average cost of capital (WACC) due to improved contract visibility, underpin the Buy recommendation with a target price increase to S$1.34.
According to TipRanks, Ban Chong is a 4-star analyst with an average return of 43.6% and a 91.67% success rate.