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UOB KAYHIAN |
PHILLIP SECURITIES |
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BRC Asia (BRC SP) Good Proxy To Rising Construction Activity
We expect BRC to continue benefitting from rising steel demand as construction activity accelerates, given its dominant market share as the largest steel supplier in Singapore. Its record S$2b orderbook, boosted by major wins like Changi Airport T5, provides strong multi-year earnings visibility. With favourable tailwinds, BRC’s earnings momentum is expected to continue going into FY26. Backed by a decent FY26 dividend yield of 5.3%, we upgrade to BUY with a 43% higher target price of S$4.69.
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Phillip Singapore Monthly – Sep25 Enjoy the liquidity
Singapore equities were up 2.3% in August, the 4 th consecutive month of gains. Leading the gainers were telecoms and cyclicals. Power and defence tumbled, whilst bank performance was mixed. Mid-cap companies under our coverage that rallied this month include PropNex (+74%), Soilbuild Construction (+68%), and Pacific Radiance (+61%).
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LIM & TAN |
UOB KAYHIAN |
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The Business Times reported that ST Engineering / STE ($7.95, up 7 cents) is pouring S$250 million over the next five years into a programme that will drive physical artificial intelligence (AI) applications such as robotics, with an initial focus on human-machine collaboration. STE’s market cap stands at S$24.8bln and currently trades at 28x forward PE and 9x PB, with a dividend yield of 2.1%. Consensus target price stands at $8.73, representing 9.8% upside potential. We continue to maintain an Accumulate rating on ST Engineering on the backdrop of increased geopolitical tensions.
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Automobile – China Weekly: Price War Took Its Toll In 2Q25, And It Is Coming Back
The price war took its toll on Chinese auto companies in 2Q25, causing a margin squeeze along the supply chain. Price wars are inevitable, despite the state’s antiinvolution campaign. Large OEMs like Geely, BYD and GWM will survive the industry consolidation. For young companies, we expect XPeng, Leapmotor and Aito to thrive. Maintain MARKET WEIGHT. Top BUYs: CATL and Geely. Top SELLs: BYD and Li Auto.
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