BRC Asia Ltd, a leading supplier in Singapore’s steel market, has reported a 24% year-on-year increase in net profit for the third quarter of 2025, according to a recent report by CGS International. This growth aligns with the company’s forecast, reflecting its strong position in the construction sector, which is experiencing a significant upcycle. The company holds an estimated 55-60% market share in Singapore, benefiting from increased demand for steel in major projects, including the Changi Airport Terminal 5.
The company’s revenue for the third quarter rose by 7% year-on-year, despite a 14% drop in steel prices, indicating a substantial increase in sales volume. BRC’s gross profit margin improved from 8.5% in the previous year to 11% this year, attributed to economies of scale. The company is a key supplier for Housing Development Board (HDB) build-to-order projects, with a robust pipeline of 58,000 units launched since 2023 and plans for an additional 35,000 units by 2027.
In a strategic move, BRC completed the acquisition of a 55% stake in Southern Steel Mesh on 14 August 2025. This acquisition is part of a restructuring effort aimed at modernising machinery and processes to enhance competitiveness. The first phase of this project is underway and expected to conclude by March 2026.
BRC’s management remains optimistic, reiterating an “Add” recommendation with a forecasted dividend yield of 6.3% for FY26. The company’s order book, bolstered by recent contract wins, stands at S$2 billion, positioning it well for sustained growth. However, potential risks include economic slowdowns and regulatory changes affecting its predominantly foreign workforce.
“`
