&ldquo We see several imminent re-rating catalysts for Reclaims Global in March 2026,&rdquo say the analysts in their Feb 12 report.

They include a &ldquo robust&rdquo 2HFY2026 ended Jan 31, with earnings up by over 50% y-o-y due to the faster-than-expected execution of projects with good margins. Economies of scale are also likely to underpin profit margin expansion, they write.

 

Other catalysts include higher consensus estimates following Reclaims Global&rsquo s full-year earnings release in March and a better-than-expected final dividend payout due to higher profitability, robust net cash balance sheet and upbeat business outlook.

Finally, Reclaims Global will hold its extraordinary general meeting (EGM) in March to approve its 1-for-1 bonus issue, which will help improve the trading liquidity of the stock. Shareholders will also be entitled to higher dividends as the bonus shares will be entitled to the final dividend payout in April or May.

In the longer term, Reclaims Global is deemed to be a beneficiary of Singapore&rsquo s construction upcycle over the next few years.

&ldquo Demand is likely to remain strong with BCA (Building and Construction Authority) forecasting $47 billion to $53 billion in construction contracts for 2026, similar to the robust 2025,&rdquo say Loo and Chan.

Furthermore, institutional interest in Reclaims Global has grown in recent months with 31.6 million new and vendor shares transacted at an average price of 39 cents to 41 cents per share.

In the mid- to long-term, the analysts also see the potential for special dividends to be distributed once its development project &mdash which is expected to be sold in the next two years &mdash is successfully monetised.

Loo and Chan&rsquo s target price is pegged to an FY2027 P/E ratio of 12.2 times, which is around the same average of Reclaims Global&rsquo s peers.

As at 2.26pm, shares in Reclaims Global are trading 1 cent higher or 2.13% up at 48 cents.

 

 

In his Nov 27 report, Ng notes that the company has built an established operating track record supported by a sizeable inhouse fleet and an end-to-end model covering demolition, deep excavation, material recovery, and transport.

According to Ng, Reclaims Global marked a strong recovery in FY2025 with revenue almost doubling to $44.4 million, with net profit almost tripling to $5.6 million on higher excavation volumes and improved fleet utilisation.

&ldquo The $7.8 m channel for the latest updates.illion placement in October further strengthened its net cash position of $18.5 million with no borrowings. With net cash representing about a third of its market cap, Reclaims Global is well positioned to expand its fleet and participate in larger public sector projects,&rdquo says Ng.

The analyst sees various investment merits for Reclaims Global.

For a start, the strong industry tailwinds with BCA projection of $39 to $46 billion in annual construction demand for 2026 to 2029, underpins sustained demand for excavation and construction and demolition (C& D) waste services.

Second, with Reclaims Global owning an integrated operating model of excavation, recycling and logistics, this improves fleet utilisation, diversifies revenue and supports margin stability, while aligning with growing industry focus on circular waste management and ESG practices.

Third, the company&rsquo s net cash balance sheet of $18.5 million as of July and further reinforced by the $7.8 million placement, provides capacity to expand the fleet, fund larger tenders and capture higher value projects.

Lastly, the company&rsquo s proven executive track record with public agencies and developers, supported by reliable project delivery, regulatory compliance and deep site work expertise.

With that, Ng tags a target price of 49.7 cents on Reclaims Global, which is based on its forward EPS against average P/E ratio of 10.9 times of its peers, representing a 27.5% upside from Nov 27&rsquo s share price of 39 cents.