“We believe that its market share will be able to give the company a structural advantage in securing Singapore infrastructure and large-scale construction projects given shorter delivery lead times and greater supply certainty,” Tng and Then says.
Some of the past landmark projects that Tai Sin was involved in include the Marina Bay Sands and Gardens by the Bay, as well as the Thomson East Coast Line.
Based on their forecast, both analysts believe Tai Sin can achieve a revenue of $679 million by FY2028, from just $481 million in FY2025.
“The forecasted figure for FY2028 is well supported by higher demand for power and control cables 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,” both analysts say.
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Both Tng and Then further add that Tai Sin typically sees a boost in delivery volume one to two years after mechanical and electrical (M&E) contractors (customers of Tai Sin) win contracts, as cable demand is synchronised with the execution/installation phases of projects.
With the data centre and hyperscaler expansion in Singapore, Johor and Vietnam, both analysts foresee 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.
Value-accretive acquisition of Integra R.E.
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Completed last November, the $16 million acquisition of Integra R.E. will help Tai Sin to bring in additional revenue of $31 million (5% of total revenue) and $53 million (8% of total revenue) in FY2026 and FY2027 respectively, according to the CGS International team.
“Assuming a net margin of 2%, we believe the acquisition will be EPS accretive by 2% and 3% for FY2026 and FY2027 respectively. The potential synergy includes the cross‑selling of solar modules, inverters and batteries through Tai Sin’s well‑established distribution channels,” both analysts predict.
Copper price
With copper being the main raw material for wire and cable production, both Tng and Then 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.
“However, cost passthrough is not fully symmetrical as existing long-term contracts have fixed pricing when order is placed, hence exposing margins to input cost mismatches as delivery happens one to two years later,” states both analysts.
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.
Initiate coverage with target price of 74 cents
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As such, the CGS International team is initiating coverage on Tai Sin with an “add” rating and a target price of 74 cents, translating to a 49% upside from its closing price as of March 25.
“This 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,” the team predicts.
Both analysts peg Tai Sin’s target price to a FY2027 P/E ratio multiple of 10 times, which is aligned with its 10 year historical average 12-month forward P/E ratio.
“Historically, Singapore-listed industrial and construction materials peers are also traded at 9.2 times P/E ratio 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,” the team claims.
On the dividend front, both analysts expect Tai Sin to continue paying a yearly dividend of 2.35 cents per share for FY2026 to FY2027, which the amount was unchanged since FY2022, as its operating cash flow is likely to support working capital needs with minimal capex going forward.
“Based on current share price, the dividend yield is around 4.7%. In a bull case scenario, we foresee a marginal dividend hike to 2.45 cents per share, implying a 4.9% yield for FY2026 to FY2028, while keeping gearing profile manageable at between 21% and 29%.
As at 4.55pm, shares in Tai Sin are trading 3.5 cents higher or 7% up at 53.5 cents.
