In a report released today, Natalie Ong from CGS-CIMB reiterated a Buy rating on BRC Asia Limited, with a price target of S$4.90.
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Natalie Ong’s rating is based on several key factors that suggest a positive outlook for BRC Asia Limited. The company is expected to benefit from peak construction volumes in the upcoming fiscal years, which should enhance both operational and financial leverage, leading to improved net profit margins. Despite a decline in steel prices, BRC has managed to maintain stable revenue through increased sales volumes, which have contributed to better financial performance.
Additionally, BRC Asia is strategically positioned to capitalize on the Singapore construction upcycle and is poised to expand its product and service offerings both locally and internationally. The company’s strong track record in contract fulfillment and safety, coupled with its dominant market share, positions it well against new market entrants. Furthermore, BRC’s ongoing efforts to restructure and integrate its recent acquisition in Malaysia indicate potential for future growth. These factors collectively underpin Natalie Ong’s Buy rating for the stock.