According to Ng, Reclaims Global marked a strong recovery in FY2025 with revenue almost doubling to $44.4 million, with net profit almost tripling to $5.6 million on higher excavation volumes and improved fleet utilisation.
“The $7.8 million placement in October further strengthened its net cash position of $18.5 million with no borrowings. With net cash representing about a third of its market cap, Reclaims Global is well positioned to expand its fleet and participate in larger public sector projects,” says Ng.
The analyst sees various investment merits for Reclaims Global.
For a start, the strong industry tailwinds with BCA projection of $39 to $46 billion in annual construction demand for 2026 to 2029, underpins sustained demand for excavation and construction and demolition (C&D) waste services.
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Second, with Reclaims Global owning an integrated operating model of excavation, recycling and logistics, this improves fleet utilisation, diversifies revenue and supports margin stability, while aligning with growing industry focus on circular waste management and ESG practices.
Third, the company’s net cash balance sheet of $18.5 million as of July and further reinforced by the $7.8 million placement, provides capacity to expand the fleet, fund larger tenders and capture higher value projects.
Lastly, the company’s proven executive track record with public agencies and developers, supported by reliable project delivery, regulatory compliance and deep site work expertise.
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With that, Ng tags a target price of 49.7 cents on Reclaims Global, which is based on its forward EPS against average P/E ratio of 10.9 times of its peers, representing a 27.5% upside from Nov 27’s share price of 39 cents.
As at 3.35 pm, shares in Reclaims Global are trading 0.5 cents lower, or 1.28% down at 38.5 cents.
