The Building and Construction Authority (BCA) expects total construction demand to be in the range of $47 billion to $53 billion in 2025, up from some $44 billion in 2024.
BCA also expects total construction demand to stay high at between $39 billion and $46 billion per year from 2026 to 2029.
Institutional and civil engineering projects account for around 52% of BCA’s 2025 forecast, up from 42% last year.
This is aligned with Pan-United’s strengths, say the analysts, which lie in civil engineering and institutional projects. “These types of projects tend to require more specialised concrete blends, which carry higher margins, in our view.”
Given Pan-United’s 40% share of the concrete market, the CGSI analysts expect higher construction demand and favourable project mix to support its revenue between FY2026 and FY2028. Hence, the analysts have raised their earnings per share forecast for those year by 12% to 19%.
Low-carbon concrete
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Pan-United began offering low-carbon concrete in 2019, ahead of its Singapore peers, and continues to invest in research and development to expand its range of low-carbon concrete solutions, say Ong and Lim.
“We believe that Pan-United’s growing range of low-carbon concrete solutions will help it defend its strong position amid intensifying societal commitment to environmental and sustainability principles,” they add.
According to Pan-United’s 2024 annual report, low-carbon solutions accounted for more than 50% of its 2024 sales volume.
The company’s proprietary carbon mineralised concrete (PanU CMC+) has been installed in several projects, including Tuas Port, the Land Transport Authority’s North-South Corridor and Cross Island Line, among other commercial and public/private residential projects.
Another upcycle
Ong and Lim have raised Pan-United’s FY2026 ebitda, based on an enterprise multiple (EV/ebitda) of 5.8x. This was Pan-United’s 2012-2014 average during Singapore’s previous construction upcycle, they add.
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Pan-United has “strong positioning” to capture construction tailwinds, supported by “improved balance sheet strength”, say Ong and Lim.
As at 11.35am, shares in Pan-United are trading 2.5 cents up, or 3.5% higher, at 73 cents.
Charts: CGSI
