SGX:BMGU

Stock Analysis Report

Executive Summary

BHG Retail REIT is the first pure-play China Retail REIT sponsored by a leading China integrated retail group.

Rewards

Trading at 64.9% below its fair value

Earnings grew by 141.9% over the past year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results



Snowflake Analysis

Undervalued with proven track record.

Share Price & News

How has BHG Retail REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BMGU has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

BMGU

-0.3%

SG REITs

-1.4%

SG Market


1 Year Return

-1.4%

BMGU

15.3%

SG REITs

0.7%

SG Market

Return vs Industry: BMGU underperformed the SG REITs industry which returned 16.1% over the past year.

Return vs Market: BMGU underperformed the SG Market which returned 2.1% over the past year.


Shareholder returns

BMGUIndustryMarket
7 Day-0.7%-0.3%-1.4%
30 Day-1.4%3.3%0.3%
90 Day0%1.8%1.9%
1 Year5.1%-1.4%22.4%15.3%4.8%0.7%
3 Year29.5%4.6%52.1%26.0%13.7%1.6%
5 Yearn/a59.3%15.9%11.5%-7.2%

Price Volatility Vs. Market

How volatile is BHG Retail REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BHG Retail REIT 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: BMGU (SGD0.69) is trading below our estimate of fair value (SGD1.95)

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


Price To Earnings Ratio

PE vs Industry: BMGU is good value based on its PE Ratio (6.5x) compared to the REITs industry average (15.3x).

PE vs Market: BMGU is good value based on its PE Ratio (6.5x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BMGU's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BMGU is good value based on its PB Ratio (0.9x) compared to the SG REITs industry average (1x).


Next Steps

Future Growth

How is BHG Retail REIT forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-1.7%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as BHG Retail REIT has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has BHG Retail REIT performed over the past 5 years?

9.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BMGU has a large one-off gain of SGD58.1M impacting its September 30 2019 financial results.

Growing Profit Margin: BMGU's current net profit margins (69.8%) are higher than last year (31.7%).


Past Earnings Growth Analysis

Earnings Trend: BMGU's earnings have grown by 9.5% per year over the past 5 years.

Accelerating Growth: BMGU's earnings growth over the past year (141.9%) exceeds its 5-year average (9.5% per year).

Earnings vs Industry: BMGU earnings growth over the past year (141.9%) exceeded the REITs industry 7.1%.


Return on Equity

High ROE: BMGU's Return on Equity (11.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is BHG Retail REIT's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

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

Debt Coverage by Assets: BMGU's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: BMGU's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if BMGU has a sufficient allowance for bad loans.

Low Risk Liabilities: BMGU reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if BMGU has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BMGU has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if BMGU has an appropriate level of bad loans.


Next Steps

Dividend

What is BHG Retail REIT's current dividend yield, its reliability and sustainability?

7.59%

Current Dividend Yield


Dividend Yield vs Market

company7.6%marketbottom25%2.5%markettop25%5.5%industryaverage5.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: BMGU's dividend (7.53%) is higher than the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: BMGU's dividend (7.53%) is in the top 25% of dividend payers in the SG market (5.41%)


Stability and Growth of Payments

Stable Dividend: BMGU has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: BMGU's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43%), BMGU's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of BHG Retail REIT's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Iz-Lynn Chan 0

0yrs

Tenure

0

Ms. Iz-Lynn Chan serves as Chief Executive Officer and Head of Investor Relations - BHG Retail Trust Management Pte Ltd at BHG Retail REIT. Ms. Chan has 20 years' experience in the real estate and service  ...


Management Age and Tenure

2.0yrs

Average Tenure

Experienced Management: BMGU's management team is considered experienced (2 years average tenure).


Board Age and Tenure

4.2yrs

Average Tenure

47yo

Average Age

Experienced Board: BMGU's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

Insider Buying: BMGU insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellS$5,06920 Jan 20
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares7,400
Max PriceS$0.69
SellS$25,82517 Jan 20
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares37,700
Max PriceS$0.69
SellS$1,91816 Jan 20
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares2,800
Max PriceS$0.69
SellS$3,42514 Jan 20
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares5,000
Max PriceS$0.69
SellS$6813 Jan 20
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares100
Max PriceS$0.68
SellS$34,25010 Jan 20
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares50,000
Max PriceS$0.69
SellS$5,00110 Jan 20
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares7,300
Max PriceS$0.69
SellS$23,29008 Jan 20
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares34,000
Max PriceS$0.69
SellS$16,57707 Jan 20
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares24,200
Max PriceS$0.69
SellS$23,56406 Jan 20
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares34,400
Max PriceS$0.69
SellS$95,83103 Jan 20
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares139,900
Max PriceS$0.69
SellS$3,38102 Jan 20
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares4,900
Max PriceS$0.69
BuyS$13,922,34229 Nov 19
Chongyu Zhang
EntityIndividual
Shares21,419,000
Max PriceS$0.65
SellS$30,042,33329 Nov 19
Bank Of Communications, Asset Management Arm
EntityCompany
Shares46,219,000
Max PriceS$0.65
SellS$30,533,74924 Sep 19
CMS Asset Management (HK) Co., Ltd.
EntityCompany
Shares46,975,000
Max PriceS$0.65
SellS$25,500,02130 Aug 19
CMS Asset Management (HK) Co., Ltd.
EntityCompany
Shares37,500,000
Max PriceS$0.68
SellS$12,53030 Aug 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares17,900
Max PriceS$0.70
SellS$14,00027 Aug 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares20,000
Max PriceS$0.70
SellS$8,26026 Aug 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares11,800
Max PriceS$0.70
SellS$7,00026 Aug 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares10,000
Max PriceS$0.70
SellS$28,00022 Aug 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares40,000
Max PriceS$0.70
SellS$14,00021 Aug 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares20,000
Max PriceS$0.70
SellS$11,76015 Aug 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares16,800
Max PriceS$0.70
SellS$63,40424 Jul 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares90,500
Max PriceS$0.70
SellS$1,82023 Jul 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares2,600
Max PriceS$0.70
SellS$21,35322 Jul 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares30,500
Max PriceS$0.70
SellS$49319 Jul 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares700
Max PriceS$0.70
SellS$5,07618 Jul 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares7,200
Max PriceS$0.71
SellS$42,36117 Jul 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares60,300
Max PriceS$0.70
BuyS$1,05016 Jul 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares1,500
Max PriceS$0.70
SellS$21,00015 Jul 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares30,000
Max PriceS$0.70
SellS$31,43012 Jul 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares44,900
Max PriceS$0.70
SellS$37,10011 Jul 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares53,000
Max PriceS$0.70
SellS$56,00010 Jul 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares80,000
Max PriceS$0.70
SellS$21,00009 Jul 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares30,000
Max PriceS$0.70
SellS$39,11808 Jul 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares55,700
Max PriceS$0.70
SellS$40,54005 Jul 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares57,700
Max PriceS$0.70
SellS$30,45604 Jul 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares43,200
Max PriceS$0.70
SellS$26,96903 Jul 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares38,500
Max PriceS$0.70
SellS$32,88202 Jul 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares46,900
Max PriceS$0.70
SellS$56,01601 Jul 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares80,000
Max PriceS$0.70
SellS$10,57528 Jun 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares15,000
Max PriceS$0.70
SellS$31,86627 Jun 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares45,200
Max PriceS$0.71
SellS$32,43025 Jun 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares46,000
Max PriceS$0.71
SellS$21,15024 Jun 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares30,000
Max PriceS$0.70
SellS$42,30021 Jun 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares60,000
Max PriceS$0.70
SellS$30,45620 Jun 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares43,200
Max PriceS$0.71
SellS$23,26518 Jun 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares33,000
Max PriceS$0.70
SellS$11,17912 Jun 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares15,900
Max PriceS$0.70
SellS$7,00006 Jun 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares10,000
Max PriceS$0.70
SellS$29,52028 May 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares41,000
Max PriceS$0.72
BuyS$437,50018 Apr 19
Beijing Hualian Department Store Co., Ltd
EntityCompany
Shares625,000
Max PriceS$0.70
SellS$411,00018 Apr 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares600,000
Max PriceS$0.68
SellS$437,50018 Apr 19
Wai Keung Siu
EntityIndividual
Role
Chairman of the Board
Chairman of the Board of BHG Retail Trust Management Pte Ltd
Shares625,000
Max PriceS$0.70
SellS$7,42015 Apr 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares10,600
Max PriceS$0.70
SellS$23,16310 Apr 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares33,000
Max PriceS$0.70
SellS$20,64209 Apr 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares29,700
Max PriceS$0.69
SellS$50,26522 Mar 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares70,300
Max PriceS$0.71
SellS$71,71507 Mar 19
BHG Retail Trust Management Pte Ltd
EntityCompany
Shares100,300
Max PriceS$0.71

Ownership Breakdown

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


Management Team

  • Iz-Lynn Chan

    Head of Investor Relations & CEO of BHG Retail Trust Management Pte Ltd

    • Nigel Nai Zi

      Investor Relations Manager of BHG Retail Trust Management Pte Ltd

      • Tenure: 4yrs
    • Lee Noi Kiar

      Company Secretary of BHG Retail Trust Management Pte Ltd

      • Tenure: 2.6yrs
    • Victor Hock

      Chief Financial Officer of BHG Retail Trust Management Pte Ltd

      • Tenure: 2yrs
    • Eric Liu

      Investment & Asset Management Manager of BHG Retail Trust Management Pte Ltd

      • Tenure: 2yrs
    • Isaac Lian

      Senior Compliance Manager of BHG Retail Trust Management Pte. Ltd.

      • Tenure: 1yrs

    Board Members

    • Ben Yeo (67yo)

      Independent Director of BHG Retail Trust Management Pte Ltd

      • Tenure: 4.9yrs
      • Compensation: S$87.00k
    • Teck Sien Lau (47yo)

      Independent Director of BHG Retail Trust Management Pte Ltd

      • Tenure: 4.2yrs
      • Compensation: S$85.00k
    • Francis Siu (65yo)

      Chairman of the Board of BHG Retail Trust Management Pte Ltd

      • Tenure: 4.2yrs
      • Compensation: S$98.00k
    • Ge Peng (47yo)

      Non-Executive Director of BHG Retail Trust Management Pte Ltd

      • Tenure: 4.2yrs
    • Zhen Xiong (44yo)

      Non-Executive Director of BHG Retail Trust Management Pte Ltd

      • Tenure: 4.2yrs

    Company Information

    BHG Retail REIT's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: BHG Retail REIT
    • Ticker: BMGU
    • Exchange: SGX
    • Founded:
    • Industry: Retail REITs
    • Sector: Real Estate
    • Market Cap: S$345.751m
    • Shares outstanding: 508.46m
    • Website: https://www.bhgreit.com

    Location

    • BHG Retail REIT
    • No. 25-11 Shaw Tower
    • 100 Beach Road
    • Singapore
    • 189702
    • Singapore

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    BMGUSGX (Singapore Exchange)YesUnitsSGSGDDec 2015

    Biography

    BHG Retail REIT is the first pure-play China Retail REIT sponsored by a leading China integrated retail group. The REIT was listed on the Main Board of the Singapore Exchange Securities Trading Limited on 11 December 2015. The principal investment strategy of BHG Retail REIT is to invest, directly or indirectly, in a diversified portfolio of income-producing real estate which is used primarily for retail purposes (whether either wholly or partially), as well as real estate-related assets in relation to the foregoing, with an initial focus on China. As at 30 September 2019, the REIT’s portfolio comprises six retail properties, Beijing Wanliu (60%), Chengdu Konggang, Hefei Mengchenglu, Hefei Changjiangxilu, Xining Huayuan, Dalian Jinsanjiao located in Tier 1, Tier 2 and other cities of significant economic potential in China. The portfolio gross floor area of about 311,691 sqm, has a committed occupancy of 98.6% as at 30 September 2019. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/26 13:14
    End of Day Share Price2020/01/24 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    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.