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After doubling net profit y-o-y, BRC Asia to recover further: CGS-CIMB

Jovi Ho
Jovi Ho5/13/2022 12:25 PM GMT+08  • 3 min read
After doubling net profit y-o-y, BRC Asia to recover further: CGS-CIMB
The brokerage has upped its TP to $2.50 from $2.10 before.
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BRC Asia is riding on industry tailwinds, with its latest net profit doubling y-o-y, say CGS-CIMB Research analysts Ong Khang Chuen and Kenneth Tan

“BRC's 1HFY2022 net profit rose to $39.8 million (up 108% y-o-y), above expectations at 77% of our FY2022F. Revenue grew 61% y-o-y to $793.3 million on the back of higher deliveries and higher steel prices (up 40% y-o-y),” write Ong and Tan.

Meanwhile, 1HFY2022 gross margins also expanded 0.6% pts y-o-y to 8.7%, due to a net reversal of $1.8 million provision for onerous contracts during the period. BRC proposed an interim dividend of 6 cents, up from 4 cents this time last year, representing 3.6% dividend yield.

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