Pan-United Corporation Ltd: 1H26 PATMI up 49% with higher interim dividend

1H26 PATMI rose 49% on higher volume and price

Pan-United’s revenue grew 37% year-on-year to S$549.6 million, while profit attributable to shareholders increased 49% to S$30.6 million. 

Concrete sales volume rose about 26%, with the rest of the revenue growth driven by higher average selling prices, mainly reflecting the pass-through of higher energy and fuel costs.

EBITDA margin improved year-on-year but eased slightly from 2H2025

Pan-United’s EBITDA margin improved to 11.1% in 1H2026, from 10.2% in 1H2025. However, this was slightly below the 11.7% margin recorded in 2H2025. 

Management said gross profit per dollar of revenue had benefited from the fuel surcharge when oil prices were elevated at around US$120 per barrel. 

With oil prices now closer to US$80 per barrel, the surcharge and gross profit per dollar are expected to normalise lower in 2H2026. 

This could moderate margins in the second half. However, management expects continued volume growth to partly offset the impact.

Malaysia and Vietnam grew about 25% in 1H26

Revenue from overseas markets rose about 25% year-on-year in 1H2026. 

Malaysia’s growth was driven mainly by private-sector demand, including data centre-related construction activity in Johor and Kuala Lumpur. 

Vietnam also remained a positive growth market, supported by infrastructure demand.

Higher interim dividend

Pan-United declared an interim dividend of 1.5 cents per share for 1H2026, up 50% from 1.0 cent per share in 1H2025. 

Management also indicated that it intends to remain broadly consistent with its recent payout practice for the final dividend, subject to board approval.

Supportive construction outlook

Management said Changi Airport Terminal 5-related contract awards are not yet complete, and could continue over the next two years. 

Beyond T5, management expects the next leg of demand to come from energy transition projects, healthcare facilities and transport-related infrastructure.

Maintain BUY with higher target price of S$1.88

We raise our target price to S$1.88, from S$1.49 previously, given Pan-United's stronger earnings trajectory, resilient margins and continued strong net cash position. 

This implies 17.8% upside from PanU's closing price of S$1.60 on 14 Aug 2026, and we maintain our BUY rating. At our target price, PanU would trade at 21.8x 2026 P/E with an implied dividend yield of 2.7%.

Key Risks

Key risks include construction-sector cyclicality, exposure to raw-material and energy cost inflation, competition from regional RMC suppliers, delays in major public projects, and slower-than-expected adoption of PanU’s digital solutions.

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