SGX:BWCU

Stock Analysis Report

EC World Real Estate Investment Trust

Executive Summary

Listed on 28 July 2016, EC World REIT is the first Chinese specialised logistics and e-commerce logistics REIT listed on Singapore Exchange Securities Trading Limited (“SGX-ST”).

Rewards

Trading at 83.2% below its fair value

Revenue is forecast to grow 5.12% per year

Earnings grew by 39% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -13% per year for the next 3 years

Dividend of 11.63% is not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

Undervalued with acceptable track record.


Similar Companies

Share Price & News

How has EC World Real Estate Investment Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BWCU's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.7%

BWCU

-9.8%

SG REITs

-4.9%

SG Market


1 Year Return

-32.0%

BWCU

-23.6%

SG REITs

-29.0%

SG Market

Return vs Industry: BWCU underperformed the SG REITs industry which returned -20.6% over the past year.

Return vs Market: BWCU underperformed the SG Market which returned -27.1% over the past year.


Shareholder returns

BWCUIndustryMarket
7 Day-3.7%-9.8%-4.9%
30 Day-27.8%-29.9%-22.2%
90 Day-29.7%-30.2%-27.6%
1 Year-26.2%-32.0%-19.1%-23.6%-26.0%-29.0%
3 Year-11.9%-31.1%1.5%-15.7%-21.3%-29.7%
5 Yearn/a8.1%-22.1%-20.3%-33.9%

Price Volatility Vs. Market

How volatile is EC World Real Estate Investment Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is EC World Real Estate Investment Trust 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: BWCU (SGD0.52) is trading below our estimate of fair value (SGD3.09)

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


Price To Earnings Ratio

PE vs Industry: BWCU is good value based on its PE Ratio (6.3x) compared to the REITs industry average (9.7x).

PE vs Market: BWCU is good value based on its PE Ratio (6.3x) compared to the SG market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: BWCU's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BWCU is good value based on its PB Ratio (0.6x) compared to the SG REITs industry average (0.7x).


Next Steps

Future Growth

How is EC World Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BWCU's earnings are forecast to decline over the next 3 years (-13% per year).

Earnings vs Market: BWCU's earnings are forecast to decline over the next 3 years (-13% per year).

High Growth Earnings: BWCU's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BWCU's revenue (5.1% per year) is forecast to grow faster than the SG market (4% per year).

High Growth Revenue: BWCU'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: BWCU's Return on Equity is forecast to be low in 3 years time (6.3%).


Next Steps

Past Performance

How has EC World Real Estate Investment Trust performed over the past 5 years?

-144.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BWCU has a large one-off gain of SGD50.3M impacting its December 31 2019 financial results.

Growing Profit Margin: BWCU's current net profit margins (65.8%) are higher than last year (48.8%).


Past Earnings Growth Analysis

Earnings Trend: BWCU's earnings have declined by -144.6% per year over the past 5 years.

Accelerating Growth: BWCU's earnings growth over the past year (39%) exceeds its 5-year average (-144.6% per year).

Earnings vs Industry: BWCU earnings growth over the past year (39%) exceeded the REITs industry 4.4%.


Return on Equity

High ROE: BWCU's Return on Equity (9.5%) is considered low.


Next Steps

Financial Health

How is EC World Real Estate Investment Trust'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: BWCU has a high level of physical assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is EC World Real Estate Investment Trust's current dividend yield, its reliability and sustainability?

11.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BWCU's dividend (11.63%) is higher than the bottom 25% of dividend payers in the SG market (3.23%).

High Dividend: BWCU's dividend (11.63%) is in the top 25% of dividend payers in the SG market (7.06%)


Stability and Growth of Payments

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

Growing Dividend: BWCU's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.6%), BWCU's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BWCU's dividends in 3 years are not forecast to be well covered by earnings (121% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Eric Goh (62yo)

2.17s

Tenure

S$5,417

Compensation

Mr. Toh Sim Goh, also known as Eric, serves as an Executive Director and Chief Executive Officer of EC World Asset Management Pte. Ltd., Manager of EC World Real Estate Investment Trust since March 23, 201 ...


Leadership Team

NamePositionTenureCompensationOwnership
Toh Sim Goh
CEO & Executive Director of EC World Asset Management Pte. Ltd.2.17yrsS$5.42k0.10% SGD427.2k
Feng Wang
Deputy Chief Financial Officer - EC World Asset Management Pte. Ltd.0.25yrno data0.0026% SGD10.6k
Jinbo Li
Chief Investment Officer - EC World Asset Management Pte. Ltd.2.25yrsno datano data
Josephine Toh
Company Secretary of EC World Asset Management Pte Ltd.no datano datano data
Kuan Lai
Company Secretary of EC World Asset Management Pte. Ltd.no datano datano data

2.2yrs

Average Tenure

Experienced Management: BWCU's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Toh Sim Goh
CEO & Executive Director of EC World Asset Management Pte. Ltd.2.17yrsS$5.42k0.10% SGD427.2k
Yew Boon Chia
Independent Non-Executive Director of EC World Asset Management Pte. Ltd.3.83yrsS$70.00k0.025% SGD104.0k
See Hong Wong
Independent Non-Executive Director of EC World Asset Management Pte. Ltd.3.83yrsS$90.00kno data
Heng Wing Chan
Lead Non-Executive Independent Director of EC World Asset Management Pte. Ltd.3.83yrsS$99.00k0.037% SGD156.0k
Guobiao Zhang
Non-Executive Chairman of EC World Asset Management Pte. Ltd.3.83yrsS$100.00kno data
Guosheng Li
Independent Non-Executive Director of EC World Asset Management Pte. Ltd.3.83yrsS$75.00kno data

3.8yrs

Average Tenure

61.5yo

Average Age

Experienced Board: BWCU's board of directors are considered experienced (3.8 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

EC World Real Estate Investment Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EC World Real Estate Investment Trust
  • Ticker: BWCU
  • Exchange: SGX
  • Founded: 2015
  • Industry: Industrial REITs
  • Sector: Real Estate
  • Market Cap: S$417.506m
  • Shares outstanding: 802.90m
  • Website: https://www.ecwreit.com

Location

  • EC World Real Estate Investment Trust
  • Republic Plaza
  • Suite 45-02
  • Singapore
  • 48619
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BWCUSGX (Singapore Exchange)YesUnitsSGSGDJul 2016

Biography

Listed on 28 July 2016, EC World REIT is the first Chinese specialised logistics and e-commerce logistics REIT listed on Singapore Exchange Securities Trading Limited (“SGX-ST”). With its portfolio of eight quality properties located predominantly in one of the largest e-commerce clusters in the Yangtze River Delta, EC World REIT offers investors unique exposure to the logistics and e-commerce sectors in Hangzhou and Wuhan, the People’s Republic of China (“PRC”). EC World REIT’s investment strategy is to invest principally, directly or indirectly, in a diversified portfolio of income-producing real estate which is used primarily for e-commerce, supply-chain management and logistics purposes, as well as real estate-related assets, with an initial geographical focus on the PRC. EC World REIT is listed in several indices. These include the FTSE ASEAN All-Share Index, FTSE ST All-Share Index, FTSE ST China Index and FTSE ST Singapore Shariah Index. For more information, please visit: http://www.ecwreit.com/ EC World REIT is managed by EC World Asset Management Pte. Ltd., which is an indirect wholly-owned subsidiary of the Sponsor – Forchn Holdings Group Co., Ltd. Established in 1992 and headquartered in Shanghai, the Sponsor is a diversified enterprise group specialising in the real estate sector, industrial sector, e-commerce, logistics and finance. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 14:22
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.