An expected recovery in the construction industry for 2021 has prompted PhillipCapital analyst Tan Jie Hui to initiate “buy” on Pan-United Corporation with a target price of 40 cents.

On the back of a disruption in the industry, which caused demand to drop 36% y-o-y in 2020 to $21.3 billion, the Building and Construction Authority (BCA) predicts that demand in 2021 will recover to between $23 billion and $28 billion.

“Ready-mixed concrete (RMC) volumes rebounded from almost 100% below their 10-year average at the start of 2020 to 14% below as at December 2020. The recovery was spearheaded by public residential and civil engineering projects,” writes Tan in a March 29 report, who expects Pan-United to benefit, as it is the market leader with a 40% share in the past five to six years.


To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook