Home Capital Broker's Calls

PhillipCapital starts Pan-United Corporation at 'buy' on recovery in construction

Felicia Tan
Felicia Tan3/29/2021 4:58 PM GMT+08  • 3 min read
PhillipCapital starts Pan-United Corporation at 'buy' on recovery in construction
Pan-United's target price of 40 cents is based on the group's historical 10-year average of 7.8 times FY2021 EV/EBITDA.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

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.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.