“We believe Ever Glory is one of the largest M&E (mechanical and electrical) players in Singapore following its acquisition of Guthrie,” says Chong in his March 9 report.
Guthrie, which has a strong track record of landmark projects in Singapore such as runway lightings in Changi Airport, will lead Ever Glory to secure more high-value contracts moving forward such as the building of Changi Airport’s Terminal 5 (T5) and airfieldd electrical contracts, Chong notes. Other contracts may also include MRT tunnel lightings by the Land Transport Authority (LTA and hospital contracts.
In addition to his upgrade, Chong has also increased his target price to $1.05 from 81 cents previously. This is based on an FY2027 P/E of 18 times, from his previous calculations, which had a blended P/E for FY2026 - FY2027. The new P/E multiple represents a 10% discount to Ever Glory’s peers’ two-year foward P/E of 20 times.
Looking ahead, Chong expects Ever Glory’s revenue to grow at a compound annual growth rate (CAGR) of 25% for the next two years, while adjusted patmi is tipped to grow at a CAGR of 36% over the same period. Both figures are supported by the group’s record order book of $733 million, which is expected to last four to five years, with significant recognition towards the later part of the period.
