Summary
Revenue visibility improves meaningfully. Reclaims’ wholly owned subsidiary, Reclaims Enterprise, was recently awarded two earthworks contracts with an aggregate value of approximately S$9.55m. Together with contract wins announced since November 2025, these projects expand the Group’s order pipeline and improve revenue visibility across FY2027–FY2028. We forecast revenue growth of 17.3% in FY2027 and 4.4% in FY2028, supported by progressive project execution. 30.01%
Margin resilience supports earnings conversion. Gross margin improved from 44.3% in FY2025 to 48.3% in FY2026, driven by stronger project execution and a more favourable project mix. Reported FY2026 net margin was 14.7%, including a divestment gain; excluding this item, underlying net margin was 12.1%. We expect margins to expand further to 13.2% in FY2027 and 14.6% in FY2028, supported by 17.3% FY2027E revenue growth, improved fixed-cost absorption and operating leverage from higher project volumes. Bonus issue improves accessibility. The 1-for-1 bonus issue which is completed on 25th March 2026 will enhance trading liquidity and gradually broaden the investor base.
Risks. Trade receivables increased to S$12.4m in FY2026, and receivables days rose to 97 days from 67 days in FY2025. Management attributed this partly to slower repayments and the timing of Chinese New Year; nevertheless, slower collection can constrain operating cash flow as revenue grows. Recommendations. We maintain a BUY rating with a Target Price of S$0.22, representing a 11.1% upside from current price. The target price is derived by applying a 25% discount to the peeraverage P/E to reflect Reclaim's smaller scale and lower trading liquidity.
More on Reclaims Global Limited
This report has been prepared and distributed by SAC Capital Private Limited (“SAC Capital”) which is a holder of a capital markets services licence and an exempt financial adviser in Singapore. This report is provided for general information only and is not intended to constitute investment, legal, tax or accounting a dvice. It has been prepared without regard to the specific investment objectives, financial situation, tax position or particular ne eds of any individual person or specific group. Nothing in this report constitutes a solicitation, invitation or offer to buy or sell any securities. Prospective investors should conduct their own due diligence and obtain independent advice (including from a financial adviser) as to the suitability of any investment, taking into account their personal circumstances. This report is confidential and is provided solely for the recipient’s information. The contents of this report may not be co pied, reproduced, published, distributed or transmitted (in part or in whole) to any other person without the prior written consent of SAC Capital. The distribution of this report outside the jurisdiction of Singapore is also strictly prohibited. Recipients are responsible for complying with any such restrictions. No representation is made that this report may be lawfully distributed in compliance with any applicable regulations outside Singapore. Whereas SAC Capital has not independently verified all the information set out in this report, all reasonable care and effort has been taken to ensure that the facts stated herein are accurate, this report might contain certain forward looking statements and forward looking financial information which are based on certain assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of the subject company to be materially different from those expressed herein. Predictions, projections or forecasts of the economy or market trends are not indicative of the future performance of the subject company. The inclusion of such statements and information should not be regarded as a representation, warranty or prediction with respect to the accuracy of the underlying assumptions of the subject company or that the forecast results will or are likely to be achieved. Our opinion and facts set out in this report are based on the market, economic, industry and other applicable conditions prevailing as at the date of the preparation of this report. Such conditions may change significantly over a relatively short period of time and we assume no responsibility to update, revise or reaffirm our opinion in light of any development subsequent to the publication of this report, that may or may not have affected our opinion contained herein. This report may contain forward-looking statements, forecasts and projections that involve assumptions, risks and uncertainties. Actual result may differ materially from those express or implied. Such forward-looking statements are made only as of the date of this report and SAC Capital assumes no obligation to update or revise them to reflect new information or future events. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information or opinions contained herein. To the extent permitted by law, SAC Capital and its affiliates, officers, directors, employees and agents expressly disclaim any liability (including negligence) for any loss arising from the use of this report or its contents. SAC Capital and its connected persons (including officers, directors and employees) may have positions in, make markets in, or effect transactions in securities mentioned in this report, and may from time to time provide or solicit advisory, corporate finance, underwriting, placement, sponsorship or other services to the issuers of those securities. SAC Capital’s employees or connected persons serve on the board or trustee positions of the subject company as disclosed hereunder: Name of the subject company Designation Nil Nil As at the date of this report, SAC Capital has proprietary positions or interests in the subject company as disclosed hereunder: Party Quantum of Position Nil Nil 4 As at the date of this report, SAC Capital, has had business relations with the subject company within the past 12 months, as disclosed hereunder: Nature of Business Relation Date of Business Relation Placement October 2025 Continuing Sponsorship Ongoing Relation As at the date of this report, the analysts who covered the securities in this report have proprietary positions or material interests in the subject company covered as disclosed hereunder: Analyst name Quantum of Position Nil Nil ANALYST CERTIFICATION As noted above, research analyst(s) of SAC Capital who produced this report hereby certify that: (i) The views expressed in this report accurately reflect his/her personal views about the subject company; (ii) The report was produced independently by him/her; (iii) He/she does not on behalf of SAC Capital or any other person carry out other services involving any of the subject comp any or securities referred to in this report; and (iv) He/she has not received and will not receive any compensation or benefits related to the recommendations or views expressed in this report or to any sales, trading, dealing or corporate finance advisory services or transaction in respect o f the securities in this report. He/she has not and will not receive any compensation or benefits linked to the performance of the securities of the subject company from the time of the publication of this report either.
