See: BRC Asia reports 24% lower 1Q21 earnings of $9.6 mil after provisions of $13.2 mil
The way he sees it, the group’s profit levels have improved “substantially” compared to 4QFY2020’s breakeven levels, in spite of provision for onerous contracts. “The provision of onerous contracts comes amid a sharp increase in global steel prices during the quarter, leading to impairment amounting to $7.9 million,” he writes.
For more stories about where the money flows, click here for our Capital section
“Potential upside can come from the continuation of such mega projects, in our view. We note that the value of construction contracts awarded continues to be on the recovery trend,” he adds. To this end, Teng has raised his earnings forecasts for the FY2021-FY2023 by 9-11% due to stronger demand for construction activities in the medium term. Shares in BRC Asia closed 3 cents lower or 1.9% down at $1.54 on Feb 10.