0651 GMT - BRC Asia delivers on its merger-and-acquisition strategy with the proposed acquisition of a 55% stake in Malaysia's Southern Steel Mesh, CGS International's Natalie Ong says in a research report. The brokerage maintains the stock's add rating. At a recent analyst briefing, management said that while BRC Asia has a manufacturing plant in Malaysia's Johor, it has negligible share in Malaysian market as it mainly manufactures products for consumption in Singapore. This acquisition is likely to give the Singapore-listed steel mesh manufacturer a share in Malaysia's downstream steel market and expand its footprint across Malaysia, Ong adds. The brokerage raises the stock's target price from S$2.70 to S$3.40, now based on estimated 2025 price-to-book-value of 1.9X. Shares are 0.6% higher at S$3.14. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
May 27, 2025 02:51 ET (06:51 GMT)
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