For the upcoming first half results, the CGSI analysts expect the company to report revenue of $117 million. At this level, it is a 309% y-o-y and 33% h-o-h jump, driven by the consolidation of Guthrie Engineering, which was acquired in 2HFY2025, as well as on-going execution of its $950 million order book.
Then and Ong further estimate Ever Glory's core 1HFY2026 net profit to reach $10 million, up 12% h-o-h, with gross profit margin potentially coming in stronger than their FY2026 estimates of 16%, as higher-margin contracts won in 2025 start to see increased recognition.
They figure that Ever Glory can chalk up another $400 million or so in order wins by the end of the second half this year, which would likely include $250 to 300 million in public infrastructure projects flagged earlier, as well as $100 to 120 million from private projects.
For Then and Ong, another possible element for investors to look out for is Ever Glory's potential dual-primary listing in Hong Kong, with trading possibly taking place by 2QFY2027.
See also: UBS lowers cost of equity and raises price targets for the local banks
However, they do not see this event as an immediate catalyst.
"While broader investor access could improve liquidity over time, we note that Hong Kong has limited direct M&E comparables, which could constrain valuation discovery relative to Singapore, in our view," state Then and Ong.
They note that Ever Glory's closest Hong Kong-listed comparables include Analogue Holdings and Accel Group, which have smaller M&E engineering segment earnings base and more diversified earnings streams.
See also: RHB sees DBS as ‘core holding’ for investors despite premium valuation, ups TP to $75.70
Meanwhile, they've maintained their target price of 90 cents, which is based on 15x FY2027 earnings, a level 1.5 sd above the company's historical 3-year mean and in line with regional peers’ average.
Then and Ong maintain that this is a "reasonable" level given Ever Glory's "robust" earnings growth of 28% of between FY2025 and FY2028.
Re-rating catalysts, in their view, include stronger-than-expected order wins, margin expansion, share buybacks and accretive M&As.
On the other hand, downside risks include sharper-than-expected cost escalation, delays in project awards or execution.
Ever Glory shares closed at 79 cents on July 14, down 1.88% for the day.
