Acquiring 20% stake in BRC Asia

■ Post a combination of new share placement and married deals, Hong Leong
Asia will have a 20% stake in BRC Asia, becoming its 2nd largest shareholder.
■ We see synergistic collaboration in 1) increased automation opportunities in
PPVC building technology locally, and 2) joint overseas expansion.
■ We estimate 8% FY22F EPS accretion for HLA should the deal materialise.
Reiterate Add and TP of S$1.05.