BRC Asia Ltd (SGX: BEC) Excerpts from CGS CIMB report BRC Asia’s 1H22 net profit of S$39.8m (+108% yoy) was a strong beat, helped by continued recovery of construction activities in Singapore. We remain confident of further recovery in coming quarters as the labour shortage eases, given steady construction demand and work backlog. Reiterate Add with a higher TP of S$2.50. BRC is our sector top pick for its relatively attractive valuation and higher dividend yield. BRC Asia 1H22 net profit doubled, beating expectations BRC’s 1H22 net profit rose to S$39.8m (+108% yoy), above expectations at 77% of our FY22F. Revenue grew 61% yoy to S$793.3m on the back of higher deliveries and higher steel prices (+40% yoy). Meanwhile, 1H22 gross margins also expanded 0.6% pts yoy to 8.7%, due to a net reversal of S$1.8m provision for onerous contracts during the period (1H21: provision of S$28.9m). BRC...