Company Update: 17 December 2025
Building Scale Through Strategic Acquisitions
- From niche contractor to integrated platform. Ever Glory United (EGU) has transformed from a mid-sized M&E contractor into a diversified engineering group through two strategic acquisitions: Fire-Guard Engineering (February 2024) and Guthrie Engineering (GE) (July 2025). The Guthrie transaction represents a significant milestone, adding S$312mn in orderbook and access to landmark projects previously beyond reach. The combined entity now possesses the technical depth, licensing breadth, and track record to compete for Singapore’s largest infrastructure tenders.
Revenue Declined On Project Completion Cycles
Revenue of S$28.6mn for 1H25 represented an 11% YoY decline from S$32.1mn in 1H24. This reflected the natural completion cycle of larger contracts in 4Q24, while newly won contracts have yet to ramp up in revenue recognition. Gross profit was S$5.3mn, while net profit reached S$4.66mn. GPM was 18.7% below the prior year period of 20.9%, which benefited from tail-end completions of higher-margin legacy projects, whereas 1H25 saw a greater proportion of recently won contracts bid at tighter pricing. Cost discipline remained intact, and operating cash flows stayed positive. The Group’s core business remained asset-light and non-inventory intensive, with stronger order inflows positioning EGU for accelerated revenue recognition.
GE Consolidation Transforms The Earnings Profile
The S$46mn acquisition of Guthrie Engineering, completed 1 July 2025, brings S$312mn in orderbook as at end-2024, plus prestigious project credentials including Marina Bay Sands, Jewel Changi Airport, and Thomson-East Coast MRT Line. We project FY25 revenue of ~S$130mn, implying strong 2H25 acceleration as GE’s contracts flow through to revenue recognition. The Group’s orderbook now exceeds S$500mn, with management targeting ~S$700mn by year-end as new awards are secured. GE’s orderbook currently stands at around S$400mn, targeting ~S$600mn by year-end.
Valuation & Action
We initiate an OUTEPERFORM rating with a S$1.20 target price. Our DCF valuation (6.48% WACC, 1.5% terminal growth) reflects the step-change in earnings power post-GE, visible orderbook conversion, and margin recovery as scale efficiencies materialize. At S$0.70, the stock trades at a significant discount to regional M&E peers despite superior infrastructure exposure and faster growth trajectory. Our valuation factors in the full 2,000,000 shares on public offer, which slightly dilutes our shareholding base.
Risks
Execution challenges in project delivery, cost inflation eroding margins, intense tender competition affecting new order wins, regulatory changes and slowdown in project rollouts.
