The company is estimated to command a 55-60% share of Singapore’s steel market, positioning it to benefit from rising construction activity.
In his Feb 16 note, PhillipCapital's Yik Ban Chong suggests that BRC Asia can secure further contract wins in the coming quarters, including MBS Integrated Resort expansion contracts, New Tengah General & Community Hospital, and MRT LTA extension contracts.
He has raised his FY2026 earnings estimates by 16%, and has raised his target price from $5.10 to $5.30. Chong, who has a "buy" call, also notes that this counter is trading at an attractive FY2026 dividend yield of 5.3%.
UOB Kay Hian's Tang Kai Jie and Heidi Mo, in their Feb 16 note, point out that BRC Asia has been improving its balance sheet, as it reduces debt and increases its net cash to $42 million as at end of 2025.
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Noting that operating cash flows has remained resilient at $53 million, they expect the company's dividend to be at an attractive yield of 5% for FY2026.
In the foreseeable future, BRC Asia is seen to enjoy the construction boom with various infrastructure and building projects well underway or in the pipeline.
"Collectively, these large-scale developments should sustain a healthy pipeline of tender opportunities and help cushion against external market volatility," say Tang and Mo, who have kept their "buy" call on this counter.
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Their new target price of $5.10, from $4.90 previously, is pegged to 14.0x FY2026 earnings, which they say is justified as it reflects BRC Asia’s strong positioning as the dominant player in Singapore’s steel market, and its status as a prime proxy for the ongoing construction upcycle, underpinning its earnings visibility and supporting a sustained growth trajectory.
BRC Asia shares changed hands at $4.45 as at 11.46 am, up 3.01% for the day and up 52.4% in the past year.
