Pan-United Corporation Ltd.: Strong Financial Performance and Strategic Advancements Justify Buy RatingWe raised our FY25e working capital by 32% to S$19.2mn (prev. S$14.5mn) because of a S$6.2mn YoY increase in inventories sold in 1H25. We lower our WACC from 11% to 7.7% from the improved visibility of contracts secured by Pan- United, notably the T5 contract. We believe the T5 project will ramp progressively over the next five years, with higher RMC demand towards the tail- end of the project when roads are paved. Authority (BCA)’s forecast, RMC demand is expected to increase ~2.9% YoY in 2H25e. This is driven by the progress of construction projects, such as HDB BTOs, mixed-use developments, healthcare facilities and LTA MRT expansion. The Positives + Higher margins driven by recent investments. In 2024, Pan-United started producing its own carbon mineralised concrete in Malaysia, which forms more than half of its revenue.