Homepage
PR Newswire
(30-01-2022, 01:53 PM)weijian Wrote: The downturn in RMC prices in Spore has been deep and long, similar to that of global oil prices. In this period, PanUnited's local market share has increased from ~30% to 40% (achieved during the 2016-2017 trough of RMC prices). RMC has been running at slightly above 100 bucks since 2H21. Looking at the historical annual prices of RMC, it is the highest in the last 7 years. Is there a better sign of things to come?
BCA expects 2022 construction demand between S$27b and S$32b, supported by public sector projects
Currently, ready-mixed concrete demand is expected to increase to between 12.5 million and 14 million cubic metres, from 11.6 million cubic metres in 2021. Demand for precast concrete is also projected to rise to between 1.6 million and 1.8 million cubic metres, up from 1.1 million cubic metres in 2021, while steel rebar demand is expected to climb to between 1 million and 1.2 million tonnes, up from 0.9 million tonnes last year.
https://www.businesstimes.com.sg/governm...-by-public
historical RMC annual avg prices: https://www.statista.com/statistics/9945...singapore/
BCA info: https://www1.bca.gov.sg/e-services/key-c...nformation
2 years ago, things were looking up for general construction and building materials but it subsequently proved to be a false start. 2022 RMC demand was projected to increase from 11.6mil to 12.5-14mil cubic metres but 2022 eventually turned out comparable to 2021.
In 2023, RMC demand was 12.25bil and 2024 forecast is expected to be 12-13mil cubic metres. Will this commodity provider finally take off again after the false start?
- A modest +30% NP YoY improvement. If excluding the coal bonzana of FY22 (10% associate), its RMC ops would have ~+40% NP YoY improvement.
- As a % of FCF, dividend payout ratio is only ~30% of FCF since FY19 (last 5 years). Working capital (receivables/payables/inventory) has largely been unchanged. Cash has largely been unchanged. The significant change to its balance sheet, has been a reduction in gearing from ~53% (107mil) to current 9% (21mil).
- The current gearing looks to be comfortable and with BCA projecting robust demand in the years ahead, would we be expecting the Ngs to continue to increase dividend in coming years? (even though it has already hiked FY23 dividend by 30%)
PanUnited FY23:
https://links.sgx.com/FileOpen/PUC_FY202...eID=786302