Pan-United Corp

Pan-United Corp: SCB has an unrated note. Note that Pan-United is Singapore‘s largest producer of ready-mix concrete (RMC). According to management, the co had a 33% market share in 2012. As SG ‘s leading supplier of concrete to construction companies, Pan-United is a potential play on SG‘s growing population and infrastructure investment and a rising population on back of SG Govt’s ‘White Paper’. Pan-United entered Vietnam in July 2011. Mgt believes that it is currently the No. 6 player in the RMC market. It stated that the market is highly fragmented, and the co aims to be a top-3 player over the next five years. Pan-United also owns 51.3% of Changshu Xinghua port, which serves the Pearl River Delta and is one of the top-10 river ports China. Based on Bloomberg consensus estimates, Pan United is trading at 10.9x FY14 P/E, with a 2014 ROE of 13.75%, and a dividend yield of 4.49%.