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”).

Snowflake

Fundamentals

Average dividend payer and fair value.

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


Market Performance


7 Day Return

0%

BWCU

0.5%

SG REITs

1.1%

SG Market


1 Year Return

5.8%

BWCU

17.7%

SG REITs

0.9%

SG Market

Return vs Industry: BWCU underperformed the SG REITs industry which returned 17.7% over the past year.

Return vs Market: BWCU exceeded the SG Market which returned 0.9% over the past year.


Shareholder returns

BWCUIndustryMarket
7 Day0%0.5%1.1%
30 Day1.4%1.9%-1.9%
90 Day-2.6%0.8%-6.5%
1 Year14.9%5.8%24.9%17.7%4.9%0.9%
3 Year21.0%-4.5%44.4%19.3%15.2%2.9%
5 Yearn/a62.2%16.7%11.2%-7.1%

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?

20.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BWCU (SGD0.74) is trading below our estimate of fair value (SGD0.92)

Significantly Undervalued: BWCU is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BWCU is good value based on its PE Ratio (14x) compared to the REITs industry average (15.8x).

PE vs Market: BWCU is poor value based on its PE Ratio (14x) compared to the SG market (13.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: BWCU is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

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


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 3 analysts?

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BWCU's forecast earnings growth (9.4% per year) is above the savings rate (2.3%).

Earnings vs Market: BWCU's earnings (9.4% per year) are forecast to grow faster than the SG market (5.7% per year).

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

Revenue vs Market: BWCU's revenue (2.8% per year) is forecast to grow slower than the SG market (5.4% per year).

High Growth Revenue: BWCU's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BWCU's Return on Equity is forecast to be low in 3 years time (6.7%).


Next Steps

Past Performance

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

-159.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BWCU's earnings have declined by -159% per year over the past 5 years.

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

Earnings vs Industry: BWCU had negative earnings growth (-21%) over the past year, making it difficult to compare to the REITs industry average (0.3%).


Return on Equity

High ROE: BWCU's Return on Equity (6.2%) is considered low.


Return on Assets

ROA vs Industry: BWCU's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: BWCU has significantly improved its Return on Capital Employed over the past 3 years.


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 0.4x 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?

8.41%

Current Dividend Yield


Dividend Yield vs Market

company8.4%marketbottom25%2.5%markettop25%5.6%industryaverage5.2%forecastin3Years8.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BWCU's dividend (8.41%) is higher than the bottom 25% of dividend payers in the SG market (2.46%).

High Dividend: BWCU's dividend (8.41%) is in the top 25% of dividend payers in the SG market (5.56%)

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: At its current payout ratio (84.7%), BWCU's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BWCU's dividends in 3 years are forecast to be covered by earnings (83.4% payout ratio).


Next Steps

Management

What is the CEO of EC World Real Estate Investment Trust's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Eric Goh (62yo)

1.7yrs

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 ...


Management Age and Tenure

1.8yrs

Average Tenure

Experienced Management: BWCU's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

3.3yrs

Average Tenure

61.5yo

Average Age

Experienced Board: BWCU's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellS$7,000,00510 Oct 19
Ec World Asset Management Pte. Ltd.
EntityCompany
Shares9,503,123
Max PriceS$0.74
SellS$9,474,49310 Jul 19
Sunkits Resources Limited
EntityCompany
Shares13,535,000
Max PriceS$0.70

Ownership Breakdown


Management Team

  • Johnnie Tng (51yo)

    Chief Financial Officer of EC World Asset Management Pte. Ltd.

    • Tenure: 2.8yrs
  • Eric Goh (62yo)

    CEO & Executive Director of EC World Asset Management Pte. Ltd.

    • Tenure: 1.7yrs
    • Compensation: S$5.42k
  • Jinbo Li

    Chief Investment Officer - EC World Asset Management Pte. Ltd.

    • Tenure: 1.8yrs
  • Josephine Toh

    Company Secretary of EC World Asset Management Pte Ltd.

    • Tenure: 0yrs
  • Feng Wang

    Head of Risk Management & Compliance - EC World Asset Management Pte. Ltd.

    • Tenure: 1.8yrs
  • Victor Lai

    Company Secretary of EC World Asset Management Pte. Ltd.

    • Tenure: 0yrs

Board Members

  • Yew Boon Chia (61yo)

    Independent Non-Executive Director of EC World Asset Management Pte. Ltd.

    • Tenure: 3.3yrs
    • Compensation: S$70.00k
  • Eric Goh (62yo)

    CEO & Executive Director of EC World Asset Management Pte. Ltd.

    • Tenure: 1.7yrs
    • Compensation: S$5.42k
  • David Wong (66yo)

    Independent Non-Executive Director of EC World Asset Management Pte. Ltd.

    • Tenure: 3.3yrs
    • Compensation: S$90.00k
  • Heng Wing Chan (72yo)

    Lead Non-Executive Independent Director of EC World Asset Management Pte. Ltd.

    • Tenure: 3.3yrs
    • Compensation: S$99.00k
  • Guobiao Zhang (59yo)

    Non-Executive Chairman of EC World Asset Management Pte. Ltd.

    • Tenure: 3.3yrs
    • Compensation: S$100.00k
  • Guosheng Li (53yo)

    Independent Non-Executive Director of EC World Asset Management Pte. Ltd.

    • Tenure: 3.3yrs
    • Compensation: S$75.00k

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$595.921m
  • Shares outstanding: 805.30m
  • 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 seve ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:58
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
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.