Summary
Reclaims Global Limited (“Reclaims”) is an integrated construction services provider specialising in excavation, construction and demolition (“C&D”) waste recycling, and logistics/equipment leasing. Since 2009, the Group 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. FY2025 marked a strong recovery, revenue almost doubled to S$44.4 million, with net profit almost tripling to S$5.6 million on higher excavation volumes and improved fleet utilisation. The S$7.8 million placement in Oct 2025 further strengthened its net cash position of S$18.5 million with no borrowings. With net cash representing about a third of its market cap, Reclaims is well positioned to expand its fleet and participate in larger public sector projects. Investment Merits. 1) Strong industry tailwinds: BCA projects S$39 to S$46 billion annual construction demand for 2026 to 2029, driven by MRT works, healthcare/education facilities and long-term coastal protection. This underpins sustained demand for excavation and C&D waste services. 2) Integrated operating model: The combination of excavation, recycling and logistics improves fleet utilisation, diversifies revenue and supports margin stability, while aligning with growing industry focus on circular waste management and ESG practices. 3) Strong financial position: The net cash balance sheet of S$18.5 million as of 31 July 2025 further reinforced by the S$7.8 million placement, provides capacity to expand the fleet, fund larger tenders and capture higher value projects. 4) Proven execution track record: Reclaims has a longstanding track record with public agencies and developers, supported by reliable project delivery, regulatory compliance and deep site work expertise. Recommendation. We initiate coverage on Reclaims with a target price of S$0.50, based on Reclaims forward EPS against the average PER of 10.9x of its peers, representing a 27.5% upside from current levels. FY23
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