Excerpts from CGSCIMB report
BRC Asia (SGX: BEC)
- FY9/22 was a record year: NP of S$90m (+92% yoy) above our forecasts. Final and Special DPS of 12 Scts brings FY22 dividend yield to 10%.
- Despite a slower start, FY23F outlook remains positive, anchored on strong local construction demand and more supportive labour conditions.
Valuation attractive at 6x CY23F P/E and 10% dividend yield. Reiterate Add.
FY9/22: A record year in revenue and profits; 10% dividend yield
Supported by recovery in Singapore’s construction activity, BRC’s 2HFY9/22 net profit rose to S$50m (+81% yoy), above expectations with FY9/22 coming in at 120%/115% of our/Bloomberg consensus’ forecasts.
2H revenue grew 34% yoy to S$906m on the back of higher deliveries and steel prices. Gross margins expanded 3.1% pts yoy to 9.4%, due to
a net reversal of S$13m provision for onerous contracts during the period (1H21: provision of S$45m).
BRC declared final and special dividends amounting to 12 cts bringing its FY22 total DPS to 18 Scts (54% dividend payout), implying a 10.2% dividend yield....
