SINGAPORE (Jan 17): When The Edge Singapore covered BRC Asia in October last year, the steel reinforcement solutions provider traded at $1.36 or 9.2 times earnings. Since then, the stock has climbed rapidly. On Jan 15, the stock closed up at $1.67 or 12.3 times earnings, chalking up a year-to-date gain of 9.9%.
According to the Building and Construction Authority (BCA), the total construction demand is expected to remain strong in 2020, underpinned by sustained public sector construction demand. BCA has forecast the total construction demand to range between $28 billion and $33 billion this year.
This is a larger forecast compared to BCA’s 2019 forecast of between $27 billion to $32 billion. And if last year’s outperformance is anything to go by, the total construction demand for this year could again surpass BCA’s 2020 forecast.