From the analysts’ perspective, the company’s earning outlook remains robust, supported by a solid pipeline and sustained project momentum. Revenue grew 14.9% y-o-y to $21.8 million in 1HFY2026, driven by strong excavation and logistics demand and multiple project wins.
“With about 75% of revenue from long-term projects, the company enjoys multi-year earnings visibility and steady contribution from ongoing and upcoming infrastructure developments,” write both Tang and Mo.
Beneficiary of Singapore’s construction boom
Meanwhile, they expect Singapore’s construction sector to maintain its robust growth, with total demand reaching $44.2 billion in 2024, exceeding the Building & Construction Authority’s mid-year forecast of $35 - $41 billion.
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“Growth is driven by public institutional projects, housing developments, and major infrastructure initiatives such as Changi Terminal 5 and Tuas Mega Port. The industry is projected to grow at around 6%, creating significant opportunities for construction service providers like Reclaims Global to benefit from the ongoing upcycle,” adds the team.
Solid orderbook pipeline ahead
Even as Reclaims Global does not disclose a formal orderbook figure, both analysts say multiple indicators point towards a solid pipeline.
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“Strong revenue momentum in excavation services (+22.3% y-o-y) and logistics (+21.1% y-o-y), building on FY2025’s surge from $13.5 million in FY2024 to $30.5 million. In 1HFY2026, projects extending over 12 months contributed around $16.4 million, representing around 75% of FY2025 revenue, reinforcing multi-year visibility,” the team explains.
“Furthermore, back in Nov 2025, Reclaims was awarded a $15.5 million contract to supply labour and machinery for earthworks and disposal works, with completion expected by FY2027. The contract is anticipated to contribute positively to Reclaims Global’s revenue and earnings growth,” predicts both Tang and Mo.
Net cash position and stable dividend payout record
At the same time, both analysts pointed out that Reclaims Global paid off its debt in FY2025 and is currently in a net cash position with $18.5 million in cash and cash equivalents.
“Reclaims Global also kept a steady dividend payout record over the past two years, paying out 1.2 cents each in total dividends in FY2024 and FY2025, representing a dividend yield of around 5%. We expect dividend payout to remain strong going forward,” they add.
Strategic growth opportunities from capital raising initiatives
Last October, the company raised $7.8 million from a fully subscribed placement at 39 cents per share, with 40% allocated for working capital and 60% for excavation projects. This was also the company’s first share placement after its IPO. The capital raise, backed by strong institutional investor interest, strengthens liquidity and positions the company to capitalise on Singapore’s construction upcycle.
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Therefore, the UOB KayHian team initiates coverage on Reclaims Global with a “buy” call and target price of 56 cents, implying a 38.3% upside. Their target price is pegged to 12 times FY2027 P/E ratio, which is in line with the company’s mean historical P/E ratio.
“We believe Reclaims Global’s current valuation of 8.7 times FY2027 P/E ratio is undervalued, given its high ROE of around 17%, three-year earnings CAGR of 8% for FY2025-2028 driven by strong construction industry tailwinds, and strong balance sheet with net cash of $18.5 million (around 30% of market capitalisation)," concludes the team.
As at 9.37am, shares in Reclaims Global are trading 0.5 cents higher, or 1.18% higher at 43 cents.
