Positives
+ Achieved higher average selling price of +5% (our estimate), versus sector average of +1%., as it sold more higher-margined ready-mixed concrete products.
+ Gross margin strengthened further to 20.8% (+1.9% point YoY). We think the higher gross margin can be maintained, as low-carbon concrete products could gain wider acceptance, as a means to offset the higher carbon tax. In addition, demand for batching services, from which PanU earns a fee, is likely to be sustained. HDB has committed to launch 20,000 to 23,000 units per year through 2025.
+ ROE improved to 16.5% (FY22: 11.0%) despite net cash of S$43mn on its balance sheet. It generated FFO/share of 9.1 cents. We expect net cash to reach S$58mn at end-2024, even with higher projected capex of S$40mn to construct a new batching plant.
Negative
Nil
Source: Phillip Capital Research - 13 Feb 2024
Created by traderhub8 | Jun 12, 2024
Created by traderhub8 | Jun 03, 2024