Sunday, September 22nd, 2024
Market UpdatesSingapore SGX stocks

BBR Asia (BRC SP)

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BBR Asia (BRC SP)

  • Recommendation: HOLD
  • Target Price: S$2.29
  • Current Price: S$2.29
  • Broker: UOB Kay Hian
  • Date of Recommendation: September 10, 2024

Performance Overview: BBR Asia posted soft results for 3QFY24, which led to a downgrade from Buy to Hold. While the company’s performance has been subdued, it is expected to finish FY24 on a strong note.

Investment Thesis:

  1. Challenging Quarter: BBR Asia’s performance in 3QFY24 was below expectations due to project delays and higher costs, but management expects a rebound in 4QFY24.
  2. Industry Position: As a leader in the construction and engineering sector, BBR Asia is well-positioned to benefit from Singapore’s infrastructure spending. However, macroeconomic challenges such as inflation and higher material costs pose risks.

Valuation and Risks:

  • With the stock trading at its target price, there is limited upside in the near term. A strong finish to FY24 could improve sentiment, but cost pressures remain a key concern.

    Thank you