As a leading contractor with a huge orderbook in defence and commodity sectors, Civmec is on track for record earnings in FY2022, says UOB Kay Hian Research analyst John Cheong.

In an Oct 18 note, Cheong is initiating coverage on Civmec with a “buy” call and a target price of 98 Singapore cents, which represents a 39% upside. 

“Civmec is on track for record earnings in FY2022 as it delivers a A$1 billion ($1 billion) orderbook for clients in the defence and commodity sectors. We believe the market has overlooked the huge potential of its defence business, which just started in FY2021 and has high barriers to entry,” writes Cheong. 

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