SGX:BEC

Stock Analysis Report

Executive Summary

BRC Asia Limited, together with its subsidiaries, engages in the prefabrication of steel reinforcement for use in concrete in Singapore and Malaysia.


Snowflake Analysis

Proven track record 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

BEC

0.7%

SG Building

-0.7%

SG Market


1 Year Return

28.6%

BEC

12.4%

SG Building

-3.7%

SG Market

Return vs Industry: BEC exceeded the SG Building industry which returned 12.4% over the past year.

Return vs Market: BEC exceeded the SG Market which returned -3.7% over the past year.


Shareholder returns

BECIndustryMarket
7 Day-1.2%0.7%-0.7%
30 Day1.2%6.3%-2.2%
90 Day14.8%29.3%-1.6%
1 Year28.6%28.6%13.1%12.4%0.2%-3.7%
3 Year187.2%185.0%22.2%14.7%8.6%-2.9%
5 Year124.7%101.2%18.5%0.5%8.9%-9.4%

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?

12.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BEC (SGD1.75) is trading above our estimate of fair value (SGD1.15)

Significantly Below Fair Value: BEC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BEC is good value based on its PE Ratio (12.9x) compared to the Building industry average (13.7x).

PE vs Market: BEC is good value based on its PE Ratio (12.9x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: BEC is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: BEC is overvalued based on its PB Ratio (1.6x) compared to the SG Building industry average (0.6x).


Next Steps

Future Growth

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

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BEC's forecast earnings growth (7.4% per year) is above the savings rate (1.8%).

Earnings vs Market: BEC's earnings (7.4% per year) are forecast to grow faster than the SG market (5.4% per year).

High Growth Earnings: BEC's earnings are forecast to grow, but not significantly.

Revenue vs Market: BEC's revenue (5.1% per year) is forecast to grow slower than the SG market (5.4% per year).

High Growth Revenue: BEC's revenue (5.1% 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 (13.1%).


Next Steps

Past Performance

How has BRC Asia performed over the past 5 years?

-1.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BEC has high quality earnings.

Growing Profit Margin: BEC's current net profit margins (3.5%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: BEC's earnings have declined by -1.9% per year over the past 5 years.

Accelerating Growth: BEC's earnings growth over the past year (162.1%) exceeds its 5-year average (-1.9% per year).

Earnings vs Industry: BEC earnings growth over the past year (162.1%) exceeded the Building industry 6.9%.


Return on Equity

High ROE: BEC's Return on Equity (12%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is BRC Asia's financial position?


Financial Position Analysis

Short Term Liabilities: BEC's short term assets (SGD531.8M) exceed its short term liabilities (SGD357.9M).

Long Term Liabilities: BEC's short term assets (SGD531.8M) exceed its long term liabilities (SGD73.8M).


Debt to Equity History and Analysis

Debt Level: BEC's debt to equity ratio (124.6%) is considered high.

Reducing Debt: BEC's debt to equity ratio has increased from 35.2% to 124.6% over the past 5 years.

Debt Coverage: BEC's debt is well covered by operating cash flow (24.2%).

Interest Coverage: BEC's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet

Inventory Level: BEC has a high level of physical assets or inventory.

Debt Coverage by Assets: BEC's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

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

2.92%

Current Dividend Yield


Upcoming Dividend Payment

Purchase BRC Asia before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.9%marketbottom25%2.7%markettop25%5.7%industryaverage2.1%forecastin3Years4.2%

Current dividend yield vs market & industry

Notable Dividend: BEC's dividend (2.86%) is higher than the bottom 25% of dividend payers in the SG market (2.56%).

High Dividend: BEC's dividend (2.86%) is low compared to the top 25% of dividend payers in the SG market (5.66%).


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 reasonably low payout ratio (37%), 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 (43.1% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Kiin Seah 0

1.4yrs

Tenure

0

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 Secretary10.6yrsno data0.00043% SGD1.8k
Kiin Seah
CEO & Executive Director1.4yrsno datano data
Xingwang Zhang
COO & Executive Director2.2yrsno datano data
Wee Min Lau
Manager of Corporate Communications9.3yrsno datano data
Siak Lim
Group Managing Director0yrsno datano data
Lau Tan
Deputy Chief Operating Officer1.4yrsno datano data
Lian Ong
Chief Commercial Officer1.4yrsno datano data
Jiguo Xu
Chief Procurement Officer & Executive Director2.3yrsno datano data
Chee Lek Lim
Executive Director1yrsno datano data
Mei Wan Low
Company Secretary7yrsno datano data

1.4yrs

Average Tenure

46yo

Average Age

Experienced Management: BEC's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Kiin Seah
CEO & Executive Director1.4yrsno datano data
Xingwang Zhang
COO & Executive Director2.2yrsno datano data
Jiguo Xu
Chief Procurement Officer & Executive Director2.3yrsno datano data
Chee Lek Lim
Executive Director1yrsno datano data
Kum Hoe Leong
Independent Director2yrsno datano data
Ser-Luck Teo
Non-Executive Independent Chairman2.3yrsno datano data
Jun He
Independent Director1.8yrsno datano data
Pui Chang
Independent Director1.5yrsno datano data

2.1yrs

Average Tenure

47yo

Average Age

Experienced Board: BEC's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 7.9%.


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$408.336m
  • 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 and Malaysia. It operates through Fabrication and Manufacturing, and Others segments. The company offers reinforcement bars; wires or mild steel round bars for construction and industrial applications; welded wire mesh products; cages; and weldfences, as well as prefabrication, and rebar cut and bend services. It is also involved in the trade of steel reinforcing bars; manufacture and sale of wire mesh fences; trading and distribution of steel products; and operation and management of airports, hotels, and resorts, as well as property development business. The company was incorporated in 1938 and is based in Singapore. BRC Asia Limited is a subsidiary of Esteel Enterprise Pte. Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 12:41
End of Day Share Price2020/02/24 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


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.