{"id":82458,"date":"2025-12-17T07:35:33","date_gmt":"2025-12-16T23:35:33","guid":{"rendered":"https:\/\/www.kgieworld.sg\/research\/?p=82458"},"modified":"2026-02-27T14:35:38","modified_gmt":"2026-02-27T06:35:38","slug":"company-report-ever-glory-united-holdings-ltd-eguh-sp-zkx-si","status":"publish","type":"post","link":"https:\/\/www.kgieworld.sg\/research\/company-report-ever-glory-united-holdings-ltd-eguh-sp-zkx-si\/","title":{"rendered":"Company Report: Ever Glory United Holdings Ltd (EGUH SP\/ZKX.SI)"},"content":{"rendered":"\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\">Company Update: <em>17 December 202<\/em>5<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\"><strong>Building Scale Through Strategic Acquisitions<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>From niche contractor to integrated platform.<\/strong> 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\u2019s largest infrastructure tenders.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading has-white-color has-text-color has-background\" style=\"background-color:#012169\"><strong>Revenue Declined On Project Completion Cycles<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">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\u2019s core business remained asset-light and non-inventory intensive, with stronger order inflows positioning EGU for accelerated revenue recognition.<\/p>\n\n\n\n<div class=\"wp-block-spacer\" style=\"height: 20px;\" aria-hidden=\"true\">\u00a0<\/div>\n\n\n\n<h2 class=\"wp-block-heading has-white-color has-text-color has-background\" style=\"background-color:#012169\"><strong>GE Consolidation Transforms The Earnings Profile<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">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\u2019s contracts flow through to revenue recognition. The Group\u2019s orderbook now exceeds S$500mn, with management targeting ~S$700mn by year-end as new awards are secured. GE\u2019s orderbook currently stands at around S$400mn, targeting ~S$600mn by year-end.<\/p>\n\n\n\n<div class=\"wp-block-spacer\" style=\"height: 20px;\" aria-hidden=\"true\">\u00a0<\/div>\n\n\n\n<h2 class=\"wp-block-heading has-white-color has-text-color has-background\" style=\"background-color:#012169\">Valuation & Action<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">We initiate an <strong>OUTEPERFORM<\/strong> rating with a <strong>S$1.20<\/strong> 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.<\/p>\n\n\n\n<div class=\"wp-block-spacer\" style=\"height: 25px;\" aria-hidden=\"true\">\u00a0<\/div>\n\n\n\n<h2 class=\"wp-block-heading has-white-color has-text-color has-background\" style=\"background-color:#012169\">Risks<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Execution challenges in project delivery, cost inflation eroding margins, intense tender competition affecting new order wins, regulatory changes and slowdown in project rollouts.\u00a0<\/p>\n\n\n\n<div class=\"wp-block-spacer\" style=\"height: 25px;\" aria-hidden=\"true\">\u00a0<\/div>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-luminous-vivid-orange-background-color has-background wp-element-button\" href=\"https:\/\/www.kgieworld.sg\/securities\/resources\/ck\/files\/docs\/research\/EVER%20GLORY%20report_initiation%20draft%20FINALLL.pdf\">Read Full Report<\/a><\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/t.me\/kgisg\"><img fetchpriority=\"high\" decoding=\"async\" width=\"760\" height=\"208\" src=\"https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2021\/04\/subscribegif.gif\" alt=\"Subscribe Now\" class=\"wp-image-3937\"\/><\/a><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n","protected":false},"excerpt":{"rendered":"<p>From niche contractor to integrated platform. Ever Glory United (EGU) has transformed from a mid-sized M&#038;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&#8217;s largest infrastructure tenders.<\/p>\n","protected":false},"author":17,"featured_media":82461,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_uag_custom_page_level_css":"","footnotes":""},"categories":[14],"tags":[],"class_list":["post-82458","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-reports"],"aioseo_notices":[],"uagb_featured_image_src":{"full":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/12\/Ever-Glory-Logo.png?wsr",159,100,false],"thumbnail":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/12\/Ever-Glory-Logo-150x100.png?wsr",150,100,true],"medium":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/12\/Ever-Glory-Logo.png?wsr",159,100,false],"medium_large":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/12\/Ever-Glory-Logo.png?wsr",159,100,false],"large":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/12\/Ever-Glory-Logo.png?wsr",159,100,false],"1536x1536":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/12\/Ever-Glory-Logo.png?wsr",159,100,false],"2048x2048":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/12\/Ever-Glory-Logo.png?wsr",159,100,false]},"uagb_author_info":{"display_name":"Enya Tan","author_link":"https:\/\/www.kgieworld.sg\/research\/author\/enya-tankgi-com\/"},"uagb_comment_info":0,"uagb_excerpt":"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.&hellip;","_links":{"self":[{"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/posts\/82458","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/comments?post=82458"}],"version-history":[{"count":6,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/posts\/82458\/revisions"}],"predecessor-version":[{"id":86040,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/posts\/82458\/revisions\/86040"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/media\/82461"}],"wp:attachment":[{"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/media?parent=82458"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/categories?post=82458"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/tags?post=82458"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}