Stock Name: UE E&C
Company Name: UE E&C LTD.
Company Name: UE E&C LTD.
| Research House: OCBC | Price Call: BUY | Target Price: 0.71 |
Shares of UE E&C fell 6% to $0.55 after OCBC Investment Research cut its target price on the Singapore construction and engineering firm to $0.71 from S$0.82, while keeping its “buy” rating.
The broker said UE E&C could be hurt if labour costs rise, given the Singapore government’s stricter foreign manpower quota for the construction industry.
Shares of UE E&C have gained about 43% so far this year.
The construction firm saw an improvement in overall gross margins for its first quarter, but this could go down if labour costs rise, OCBC said.
UE E&C reported on Thursday a 19% year-on-year fall in first-quarter net profit to $4 million, mainly due to lower contribution from existing projects, the broker said in a report.
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