BRC Asia and Pan-United are both pure-play construction players in Singapore, say Lock and Lim, while they view HLA as an “underappreciated proxy” for the Singapore and Malaysia construction industry upcycle, given that its current share price implies 2.5 times price-to-earnings (P/E) for its building materials unit. The CGSI analysts also see “strong earnings growth” for HLA over FY2024-2025.
CGS International (CGSI) analysts Lock Mun Yee and Lim Siew Khee have highlighted BRC Asia (SGX:BEC
) , Hong Leong Asia (SGX:H22) (HLA) and Pan-United Corp (SGX:P52) as potential beneficiaries from the plans laid out by Prime Minister Lawrence Wong in his first National Day Rally speech on Aug 18.
The construction sector is a potential beneficiary, say Lock and Lim in an Aug 19 note on the Singapore market. “The raft of infrastructure and public housing projects planned reinforces our view of continued strength in Singapore’s construction activity over the next five years, which could benefit all three building material companies under our coverage.”
