🚀 1-Min Stock Rundown

🛒 Pan-United Limited (SGX: P52): Transformation into a Low-Carbon Concrete Leader

📈 Steady Financial Performance: Revenue rose 4.9% year-on-year to S$812.3 million in FY2024, driven by higher ready-mix concrete sales in Singapore and regional markets. Net profit improved 19.1% to S$40.9 million, underpinned by streamlined plant operations and lower raw materials expenditure. Return on equity climbed to 8.2%, up from 6.7% in FY2023, reflecting stronger asset utilisation.

🌍 Low-Carbon Concrete Leadership: The group solidified its position as a leading producer of carbon-mineralised concrete, sequestering CO₂ within specialised blends. Over 300 research-driven product variants now feature at least 8% recycled content, with more than half certified as low-carbon under international standards.

♻️ Sustainability Commitments: Pan-United targets 100% low-carbon concrete by 2030, carbon-neutral concrete by 2040, and full carbon neutrality in operations by 2050. Pan-United’s ESG rating improved to AA in the latest MSCI assessment, driven by innovation and transparency.

💸 Dividend Resilience: The company maintained a full-year dividends per share of 3 Singapore cents, with a payout ratio of 51.3%, reinforcing its strong free cash flow generation. In fact, dividends per share has soared from 0.8 cents in FY2020 to 3 cents in FY2024, marking a 375% increase alongside the earnings increase in the past years.

🤝 Analyst Sentiment: Broker consensus remains upbeat, with key analysts assigning ‘Add’ or ‘Buy’ ratings and target prices averaging S$0.74. The average consensus target implies 13% upside, while the forward EV/EBITDA multiple sits at a sector-low 6.5×.

🚀 Market Outlook: Singapore’s Building and Construction Authority projects construction demand of S$34.5 billion annually through 2028, up 23% from pre-pandemic levels. Pan-United’s 40% domestic market share and expanded footprint in Malaysia, Vietnam, and Indonesia position it to capture growth in ready-mix volumes, forecast at 13.8 million m³ in 2025.

📈 Conclusion

With improving fundamentals and strong ESG credentials, Pan-United stands out for investors seeking yield, sustainable growth, and exposure to the infrastructure upcycle.

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Until next Wednesday,
James - breaking-down-stocks - Yeo

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