BRC Asia Ltd: Strong Performance Drives 36% Profit Growth December 3, 2025

BRC Asia Ltd: Strong Performance Drives 36% Profit Growth

**Company Overview and Market Position**

BRC Asia Ltd operates as a leading steel reinforcement solutions provider in the construction industry, specialising in steel rebar delivery and related services. The company serves as a critical supplier to Singapore’s construction sector, supporting major infrastructure and residential development projects across the region.


**Strong Financial Performance Highlights**

BRC Asia delivered impressive financial results with adjusted profit after tax and minority interests (PATMI) surging 36% year-on-year in the second half of FY25. Full year revenue and adjusted PATMI came in at 96% and 101% of forecasts, respectively, demonstrating solid execution against expectations. Excluding the S$16.5 million disposal gains on associates from 2H24 and other one-off items, the underlying business performance showed remarkable strength.

The standout performance was driven primarily by an estimated 34% year-on-year increase in steel rebar delivery volumes, marking the highest volume growth since 2H23. This surge reflects stronger construction project offtake across BRC Asia’s key markets, indicating robust demand conditions in the construction sector.


**Robust Order Book Supports Future Growth**

BRC Asia’s business outlook appears particularly strong, supported by a substantial S$1.9 billion order book. This represents a 36% year-on-year increase and is 42% above the company’s five-year historical average. The significant boost stems from S$570 million in T5 contracts awarded during 3Q25, providing substantial revenue visibility for the coming periods.

Steel rebar delivery volumes are expected to continue ramping up over subsequent quarters as project offtake strengthens, with peak volumes anticipated in 2026-27. Key growth drivers include HDB BTO buildout programmes, the T5 project ramp-up, and expansion contracts for the Marina Bay Sands Integrated Resort which are expected to be tendered to main contractors by year-end.


**Investment Recommendation and Valuation**

Phillip Securities Research has upgraded BRC Asia to BUY from NEUTRAL, raising the target price to S$5.10 from the previous S$4.10. The revision reflects a 15% increase in FY26 adjusted PATMI forecasts, driven by higher expected delivery volumes. The target price incorporates valuations rolled over to FY26/27, with weighted average cost of capital (WACC) and growth rate assumptions at 10% and 2.5% respectively. The stock also offers an attractive FY26 dividend yield of 4.8%, enhancing its investment appeal.


This article was written with help from PhillipGPT, based on a report by a Phillip Securities Research analyst.


Reference link: BRC Asia Target Price S$5.10 – Stock Analyst Research | POEMS


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About the author

Yik Ban Chong
Phillip Securities Research analyst

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