SGX:BEC

Stock Analysis Report

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Executive Summary

BRC Asia Limited, together with its subsidiaries, engages in the prefabrication of steel reinforcement for use in concrete in Singapore, China, Hong Kong, Malaysia, Thailand, and internationally. More Details


Snowflake Analysis

Good value with adequate balance sheet and pays a dividend.

Share Price & News

How has BRC Asia's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BEC is less volatile than 75% of SG stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: BEC's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.3%

BEC

0.8%

SG Building

-0.01%

SG Market


1 Year Return

-7.1%

BEC

34.3%

SG Building

-9.7%

SG Market

Return vs Industry: BEC underperformed the SG Building industry which returned 34.3% over the past year.

Return vs Market: BEC exceeded the SG Market which returned -9.7% over the past year.


Shareholder returns

BECIndustryMarket
7 Day1.3%0.8%-0.01%
30 Day6.8%7.4%6.1%
90 Day26.6%15.6%17.3%
1 Year-1.2%-7.1%36.9%34.3%-4.9%-9.7%
3 Year21.0%13.0%30.0%21.8%-10.6%-21.5%
5 Year190.1%151.2%82.0%57.1%24.8%1.8%

Long-Term Price Volatility Vs. Market

How volatile is BRC Asia's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BRC Asia undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BEC (SGD1.57) is trading below our estimate of fair value (SGD3.43)

Significantly Below Fair Value: BEC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BEC is good value based on its PE Ratio (18x) compared to the XA Building industry average (18.5x).

PE vs Market: BEC is poor value based on its PE Ratio (18x) compared to the SG market (15.6x).


Price to Earnings Growth Ratio

PEG Ratio: BEC is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: BEC is overvalued based on its PB Ratio (1.4x) compared to the SG Building industry average (0.7x).


Next Steps

Future Growth

How is BRC Asia forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

21.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BEC's forecast earnings growth (21.5% per year) is above the savings rate (2%).

Earnings vs Market: BEC's earnings (21.5% per year) are forecast to grow slower than the SG market (24.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BEC's revenue (11.8% per year) is forecast to grow faster than the SG market (8% per year).

High Growth Revenue: BEC's revenue (11.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BEC's Return on Equity is forecast to be low in 3 years time (13.5%).


Next Steps

Past Performance

How has BRC Asia performed over the past 5 years?

36.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BEC has a large one-off gain of SGD6.2M impacting its September 30 2020 financial results.

Growing Profit Margin: BEC's current net profit margins (3.3%) are lower than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: BEC's earnings have grown significantly by 36.5% per year over the past 5 years.

Accelerating Growth: BEC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BEC had negative earnings growth (-35.7%) over the past year, making it difficult to compare to the Building industry average (-3.8%).


Return on Equity

High ROE: BEC's Return on Equity (7.7%) is considered low.


Next Steps

Financial Health

How is BRC Asia's financial position?


Financial Position Analysis

Short Term Liabilities: BEC's short term assets (SGD446.1M) exceed its short term liabilities (SGD243.2M).

Long Term Liabilities: BEC's short term assets (SGD446.1M) exceed its long term liabilities (SGD112.2M).


Debt to Equity History and Analysis

Debt Level: BEC's debt to equity ratio (93.8%) is considered high.

Reducing Debt: BEC's debt to equity ratio has increased from 19% to 93.8% over the past 5 years.

Debt Coverage: BEC's debt is well covered by operating cash flow (49.2%).

Interest Coverage: BEC's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet


Next Steps

Dividend

What is BRC Asia current dividend yield, its reliability and sustainability?

3.82%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: BEC's dividend (3.82%) is higher than the bottom 25% of dividend payers in the SG market (2.12%).

High Dividend: BEC's dividend (3.82%) is low compared to the top 25% of dividend payers in the SG market (4.97%).


Stability and Growth of Payments

Stable Dividend: BEC's dividend payments have been volatile in the past 10 years.

Growing Dividend: BEC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.9%), BEC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BEC's dividends in 3 years are forecast to be well covered by earnings (41.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Kiin Peng Seah

2.33yrs

Tenure

Mr. Kiin Peng Seah has been Chief Executive Officer at BRC Asia Limited since September 26, 2018 and its Executive Director since March 1, 2010. He is responsible for assisting its Managing Director in str...


Leadership Team

NamePositionTenureCompensationOwnership
Chun Fun Lee
CFO & Company Secretary11.5yrsno datano data
Kiin Peng Seah
CEO & Executive Director2.33yrsno datano data
Xingwang Zhang
COO & Executive Director3.08yrsno datano data
Wee Min Lau
Manager of Corporate Communications10.25yrsno datano data
Siak Lim
Group Managing Directorno datano datano data
Lau Tan
Deputy Chief Operating Officer2.33yrsno datano data
Lian Ong
Chief Commercial Officer2.33yrsno datano data
Jiguo Xu
Chief Procurement Officer & Executive Director3.17yrsno datano data
Chee Lek Lim
Executive Director1.92yrsno datano data
Mei Wan Low
Company Secretary7.92yrsno datano data
Meng Seah Ng
Senior Manager of Marketingno datano datano data
Leong Yin Kang
Information Technology Managerno datano datano data

2.3yrs

Average Tenure

47yo

Average Age

Experienced Management: BEC's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kiin Peng Seah
CEO & Executive Director2.33yrsno datano data
Xingwang Zhang
COO & Executive Director3.08yrsno datano data
Jiguo Xu
Chief Procurement Officer & Executive Director3.17yrsno datano data
Chee Lek Lim
Executive Director1.92yrsno datano data
Kum Hoe Leong
Independent Director2.92yrsno datano data
Ser-Luck Teo
Non-Executive Independent Chairman3.17yrsno datano data
Jun He
Independent Director2.75yrsno datano data
Pui Chang
Independent Director2.42yrsno datano data

3.0yrs

Average Tenure

48yo

Average Age

Experienced Board: BEC's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

BRC Asia Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BRC Asia Limited
  • Ticker: BEC
  • Exchange: SGX
  • Founded: 1938
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: S$366.336m
  • Shares outstanding: 233.34m
  • Website: https://www.brc.com.sg

Number of Employees


Location

  • BRC Asia Limited
  • 350 Jalan Boon Lay
  • Jurong Industrial Estate
  • Singapore
  • 619530
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BECSGX (Singapore Exchange)YesOrdinary SharesSGSGDJul 2000

Biography

BRC Asia Limited, together with its subsidiaries, engages in the prefabrication of steel reinforcement for use in concrete in Singapore, China, Hong Kong, Malaysia, Thailand, and internationally. It operat...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/24 11:12
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.