Ever Glory United (EGU) has been rated as “outperform” by KGI Securities, with a 12-month target price of S$1.20. This follows EGU’s transformation from a mid-sized mechanical and electrical (M&E) contractor into a diversified engineering platform, bolstered by its acquisitions of Fire-Guard Engineering in February 2024 and Guthrie Engineering in July 2025.
The acquisition of Guthrie Engineering has significantly enhanced EGU’s orderbook by S$312m, adding prestigious projects such as Marina Bay Sands and Jewel Changi Airport to its portfolio. This positions EGU to compete for Singapore’s largest public-sector tenders, thanks to its expanded scale and licensing capabilities.
Singapore’s infrastructure sector is projected to see construction demand between S$47b and S$53b in 2025, driven by mega-projects like Changi Terminal 5 and the Cross Island Line. EGU’s predominantly public-sector orderbook, which exceeds S$500 million with a year-end target of S$700 million, ensures revenue visibility through the financial years 2027 to 2028.
Financially, EGU remains robust, maintaining a net cash position and generating positive operating cash flows. The company continues to reward shareholders with dividends, supported by its asset-light model and prudent working-capital management.
Additionally, EGU holds minority stakes in a residential project in District 14 and an industrial development in Mandai, offering potential upside. Management has indicated a willingness to explore selective property investments that leverage its M&E expertise.
These strategic moves underscore EGU’s strengthened market position and potential for future growth in Singapore’s booming infrastructure sector.
