BRC Asia Limited (BEC) AI Stock Analysis

• Market Cap: S$1.00B
• Dividend Yield: 3.76%
• Average Volume (3M): 60.76K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.57
• Revenue Growth: -13.76%
• EPS Growth: 10.28%
• Country: SG
• Employees: 726
• Sector: Industrials
• Sector Strength: 90
• Industry: Steel
• EPS (TTM): 0.15
• Shares Outstanding: 275,976,680
• 10 Day Avg. Volume: 127,100
• 30 Day Avg. Volume: 60,756
• PEG Ratio: -3.62
• Price to Book (P/B): 2.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.02
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$3.41
• Price Target Upside: -4.01% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: S$4.00 ▲(12.68%Upside)

BRC Asia Limited's overall score is driven by solid financial performance and attractive valuation. While technical indicators suggest bullish momentum, caution is advised due to overbought signals. The stock's low leverage and strong dividend yield add to its appeal, though the absence of earnings call data and significant corporate events limits additional insights.

Positive Factors

Demand

BRC sees strong demand from a large number of upcoming HDB projects and mega infrastructure projects.

M&A Strategy

BRC delivered on its M&A strategy with the proposed 55% stake acquisition of Southern Steel Mesh, giving it a c.15% share in the Malaysian market.

Order Book

BRC’s order book reached a new high of S$1.5bn.

Negative Factors

Project Delays

The lower top-line revenue was largely due to a fall in steel prices and slow project offtake coupled with engineering delays that have hindered project completion.

Project Scheduling

Schedules and phases of key projects may undergo changes which could affect project delivery.

Steel Prices

Lower steel prices continue to weigh down on revenue, with a 5.6% YoY decline in FY1H25 primarily due to a ~14% YoY fall in steel prices.

BRC Asia Limited Business Overview & Revenue Model

Company Description

BRC Asia Limited, together with its subsidiaries, engages in the prefabrication of steel reinforcement for use in concrete in Singapore, China, Brunei, Hong Kong, Malaysia, Indonesia, Thailand, and internationally. It operates through Fabrication and Manufacturing, and Others segments. The company is involved in the trading of steel reinforcing bars; manufacture and sale of wire mesh fences; prefabrication, manufacturing, trading, distribution, and sale of steel products; and provision of weldfences and cages, as well as prefabrication, rebar, and cut and bend services. It also operates and manages airports, hotels, and resorts; and develops properties. The company was incorporated in 1938 and is based in Singapore. BRC Asia Limited is a subsidiary of Esteel Enterprise Pte. Ltd.

How the Company Makes Money

BRC Asia Limited generates revenue primarily through the manufacture and sale of steel reinforcement products. The company's key revenue streams include the sale of prefabricated mesh, cut and bend reinforcement bars, and other related steel products to construction companies and infrastructure developers. By focusing on innovation and efficiency in its manufacturing processes, BRC Asia Limited can offer competitive pricing and high-quality products, which attract a steady stream of clients across different sectors. Additionally, the company may engage in strategic partnerships or collaborations with construction firms and developers to secure long-term supply contracts, further contributing to its earnings.

BRC Asia Limited Financial Statement Overview

Summary

BRC Asia Limited demonstrates strong financial performance with high profitability margins and effective cash flow management despite revenue declines. The balance sheet shows low leverage and high return on equity, ensuring financial stability.

Income Statement

BRC Asia Limited has shown a solid gross profit margin of 10.38% and an impressive net profit margin of 6.32% for the recent period. While the revenue has declined by 8.93% compared to the previous year, the company has managed to maintain strong EBIT and EBITDA margins at 6.84% and 9.55% respectively, indicating robust operational efficiency. Despite the revenue contraction, profitability metrics remain favorable.

Balance Sheet

The company's balance sheet reflects a stable financial standing with a debt-to-equity ratio of 0.52, showcasing conservative leverage. The return on equity stands at 19.68%, reflecting effective utilization of equity capital. Additionally, with an equity ratio of 52.57%, BRC Asia Limited maintains a solid equity base relative to its assets, suggesting financial stability and lower risk.

Cash Flow

BRC Asia Limited demonstrates strong cash flow management with a significant increase in free cash flow by 20.73% year-over-year, and an impressive operating cash flow to net income ratio of 2.06. The free cash flow to net income ratio is robust at 2.02, indicating effective conversion of earnings into cash flow, which enhances financial flexibility.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	1.48B	1.63B	1.70B	1.17B	612.38M
Gross Profit	153.80M	139.05M	153.72M	82.13M	66.15M
EBITDA	141.65M	122.51M	129.56M	79.03M	66.81M
Net Income	93.54M	75.75M	90.22M	47.03M	20.35M
Balance Sheet
Total Assets	904.02M	952.36M	973.11M	884.72M	619.95M
Cash, Cash Equivalents and Short-Term Investments	191.37M	184.62M	154.57M	82.97M	77.89M
Total Debt	245.73M	380.68M	457.98M	435.77M	279.26M
Total Liabilities	428.73M	525.05M	574.32M	583.77M	355.40M
Stockholders Equity	475.28M	427.31M	398.79M	300.95M	264.55M
Cash Flow
Free Cash Flow	188.66M	156.26M	46.05M	-128.10M	119.56M
Operating Cash Flow	192.97M	159.53M	48.96M	-126.16M	122.10M
Investing Cash Flow	2.82M	2.66M	-1.38M	-1.13M	-1.41M
Financing Cash Flow	-183.03M	-127.02M	22.82M	135.86M	-111.83M

BRC Asia Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:BEC, the sentiment is Positive. The current price of 3.55 is above the 20-day moving average (MA) of 3.28, above the 50-day MA of 3.19, and above the 200-day MA of 2.75, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 69.99 is Neutral, neither overbought nor oversold. The STOCH value of 84.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:BEC.

BRC Asia Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEC	74 Outperform	S$1.00B	10.31		3.76%	-13.76%	10.28%
Sector *	67 Neutral	£2.87B	10.55	4.69%	233.42%	2.40%	-24.48%
5VS	―	S$198.05M	7.19	22.27%	3.26%	―	―
BFI	―	S$45.65M	14.77	3.87%	―	―	―
E3B	68 Neutral	S$537.76M	9.77	8.58%	1.15%	-10.70%	-45.35%
J2T	―	S$258.61M	8.08	11.79%	3.56%	―	―
V5Q	―	S$185.32M	6.59	41.57%	1.79%	―	―

BRC Asia Limited Corporate Events

BRC Asia Limited’s EGM Discusses Key Transaction Mandates

BRC Asia Limited held an Extraordinary General Meeting (EGM) to discuss the adoption of two Interested Person Transactions Mandates. The meeting, chaired by Mr. Teo Ser Luck, was attended by the company’s board members and shareholders. The adoption of these mandates is expected to streamline operations and enhance corporate governance, potentially impacting the company’s strategic partnerships and stakeholder relations.

The most recent analyst rating on (SG:BEC) stock is a Buy with a S$2.27 price target. To see the full list of analyst forecasts on BRC Asia Limited stock, see the SG:BEC Stock Forecast page.

BRC Asia Secures S$570 Million Contract for Changi Airport Terminal 5

BRC Asia Limited has secured contracts worth approximately S$570 million to supply steel reinforcement for the substructure of Singapore Changi Airport’s Terminal 5, awarded by a joint venture between China Communications Construction Company Limited and Obayashi Singapore. This contract strengthens BRC’s position as a key player in Singapore’s infrastructure sector, enhancing its market leadership and extending its revenue visibility through 2029, as the company continues to play a crucial role in major domestic infrastructure projects.

The most recent analyst rating on (SG:BEC) stock is a Buy with a S$2.27 price target. To see the full list of analyst forecasts on BRC Asia Limited stock, see the SG:BEC Stock Forecast page.