Some of the landmark projects Tai Sin was involved in include Marina Bay Sands, Gardens by the Bay, and the Thomson-East Coast Line.
They project Tai Sin to achieve revenue of $679 million by FY2028, from just $481 million in FY2025, with demand coming from several large projects in Singapore, such as the Cross-Island line, Changi Terminal 5 and Tuas Mega Port, together with potential new data centres at Jurong Island and Marina Bay Sands expansion.
According to Tng and Then, Tai Sin typically sees a boost in delivery volume one to two years after mechanical and electrical (M&E) contractors, who are Tai Sin’s customers, win contracts, as cable demand is synchronised with project installation phases.
With the data centre and hyperscaler expansion in Singapore, Johor and Vietnam, the analysts expect Tai Sin’s cable and wire (C&W) segment to remain a core growth driver, contributing about 67% of revenue and about 50% of incremental revenue growth in FY2026 to FY2028.
Cost pass-through
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From the perspective of Tng and Then, Tai Sin is set to benefit from an earnings boost from a recent acquisition of Integra RE, which is in the wholesale distribution of renewable energy equipment in Southeast Asia. Completed last November, the $16 million acquisition will help Tai Sin bring in additional revenue of $31 million, or 5% of the total for FY2026, and $53 million, or 8% of the total, for FY2027.
Assuming a net margin of 2%, the acquisition will be EPS accretive by 2% and 3% for FY2026 and FY2027, respectively. The potential synergy includes cross-selling solar modules, inverters and batteries through Tai Sin’s well-established distribution channels, the analysts suggest.
The movement of copper prices — the key raw material in wire and cable production — will affect Tai Sin’s financials. The analysts believe that higher copper prices could support revenue growth for Tai Sin’s C&W segment as copper costs are contractually embedded in selling prices.
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“However, cost pass-through is not fully symmetrical as existing long-term contracts have fixed pricing when the order is placed, hence exposing margins to input cost mismatches as delivery happens one to two years later,” they note.
Going forward, they believe that a gradual increase in copper prices allows Tai Sin to adjust pricing for new orders and partially mitigate cost pressures through inventory and hedging planning.
The analysts’ bullish view of this counter is largely underpinned by improving net profit visibility over FY2026 to FY2028 as construction demand in Singapore and the region recovers, alongside margin normalisation in its C&W segment (from 4% in FY2026 to 7% by FY2028) as copper prices stabilise.
Their target price of 74 cents is pegged to 10 times FY2027 earnings, which is aligned with its 10-year historical average 12-month forward P/E ratio.
They observe that historically, Singapore-listed industrial and construction materials peers are also traded at 9.2x earnings on average across the cycle. Tai Sin’s larger regional peers are trading at mid-teen multiples of FY2027 P/E ratio on average. “Given its smaller scale, we deem our marginal valuation discount as reasonable,” say Tng and Then.
On the dividend front, they expect Tai Sin to continue paying a yearly dividend of 2.35 cents per share for FY2026 to FY2027 — unchanged since FY2022, as its operating cash flow is likely to support working capital needs with minimal capex going forward.
In a bull-case scenario, the CGSI analysts foresee a marginal dividend hike to 2.45 cents per share, implying a 4.9% yield for FY2026 to FY2028, while keeping the gearing profile manageable at 21% to 29%.
