BRC Asia Limited (BEC) AI Stock Analysis

• Market Cap: S$1.14B
• Dividend Yield: 4.84%
• Average Volume (3M): 89.09K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.67
• Revenue Growth: -13.76%
• EPS Growth: 10.28%
• Country: SG
• Employees: 726
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): N/A
• Shares Outstanding: 275,976,680
• 10 Day Avg. Volume: 98,260
• 30 Day Avg. Volume: 89,093
• PEG Ratio: 0.32
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 3.43
• 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$4.70
• Price Target Upside: 13.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: S$4.50 ▲(8.96% Upside)

BRC Asia Limited's overall stock score is driven by strong financial performance, particularly in profitability and cash flow, despite a concerning revenue decline. The technical analysis supports a positive trend, and the valuation metrics suggest the stock is attractively priced with a solid dividend yield. The absence of earnings call and corporate events data does not impact the score.

Positive Factors

Cash Flow Management

Strong cash flow management allows BRC Asia to invest in growth opportunities and service debt, supporting long-term stability.

Management Restructuring

The management restructuring aims to enhance operational performance and growth, indicating a strategic focus on long-term leadership strength.

Profitability

High profitability margins reflect efficient cost management and operational efficiency, supporting sustained financial health.

Negative Factors

Revenue Decline

A substantial revenue decline poses a risk to growth and market position, potentially impacting long-term financial performance.

Moderate Leverage

Moderate leverage could limit financial flexibility and increase vulnerability to adverse market conditions, affecting long-term stability.

Revenue Growth Trend

Negative revenue growth trend indicates challenges in market expansion and product demand, impacting future earnings potential.

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 sale of its steel products to construction companies, contractors, and other industries requiring steel materials. The company's revenue model is based on direct sales and long-term contracts with clients, ensuring a steady flow of income. Key revenue streams include the sale of different types of steel products, such as rebar and wire rods, as well as value-added services like customized steel processing. Additionally, BEC may engage in partnerships with construction firms and suppliers, which can lead to bulk orders and recurring business, further enhancing its earnings potential.

BRC Asia Limited Financial Statement Overview

Summary

BRC Asia Limited shows strong profitability and cash flow metrics, with a healthy gross profit margin of 10.38% and a net profit margin of 6.31%. However, a significant revenue decline of 27.02% is a concern. The balance sheet indicates improved leverage with a debt-to-equity ratio of 0.52, but moderate leverage remains a risk.

Income Statement

BRC Asia Limited shows a strong gross profit margin of 10.38% and a net profit margin of 6.31% for the latest period, indicating efficient cost management. However, the company experienced a significant revenue decline of 27.02% compared to the previous year, which is a concern. The EBIT and EBITDA margins are healthy at 8.27% and 9.56%, respectively, reflecting good operational efficiency despite the revenue drop.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.52, indicating a more balanced capital structure compared to previous years. Return on equity is strong at 19.68%, showcasing effective use of shareholder funds. However, the equity ratio stands at 52.57%, suggesting moderate leverage and potential risk if market conditions worsen.

Cash Flow

BRC Asia Limited demonstrates robust cash flow management with a significant free cash flow growth rate of 59.41%. The operating cash flow to net income ratio is 0.48, and the free cash flow to net income ratio is 0.98, indicating strong cash generation relative to earnings. This positions the company well for future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.44B	1.48B	1.63B	1.70B	1.17B	612.38M
Gross Profit	146.54M	153.80M	139.05M	153.72M	82.13M	66.15M
EBITDA	112.22M	141.65M	122.51M	129.56M	79.03M	66.81M
Net Income	97.09M	93.54M	75.75M	90.22M	47.03M	20.35M
Balance Sheet
Total Assets	907.69M	904.02M	952.36M	973.11M	884.72M	619.95M
Cash, Cash Equivalents and Short-Term Investments	143.81M	191.37M	184.62M	154.57M	82.97M	77.89M
Total Debt	259.95M	245.73M	380.68M	457.98M	435.77M	279.26M
Total Liabilities	429.09M	428.73M	525.05M	574.32M	583.77M	355.40M
Stockholders Equity	478.60M	475.28M	427.31M	398.79M	300.95M	264.55M
Cash Flow
Free Cash Flow	94.20M	188.66M	156.26M	46.05M	-128.10M	119.56M
Operating Cash Flow	97.41M	192.97M	159.53M	48.96M	-126.16M	122.10M
Investing Cash Flow	3.77M	2.82M	2.66M	-1.38M	-1.13M	-1.41M
Financing Cash Flow	-84.61M	-183.03M	-127.02M	22.82M	135.86M	-111.83M

BRC Asia Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.13
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 4.13 is below the 20-day moving average (MA) of 4.16, below the 50-day MA of 4.21, and above the 200-day MA of 3.39, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.65 is Neutral, neither overbought nor oversold. The STOCH value of 45.96 is Neutral, 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
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

BRC Asia Limited Corporate Events

BRC Asia Limited Announces Key Management Restructuring

BRC Asia Limited has announced significant changes in its key management positions, effective from August 22, 2025. Mr. Zhang Xingwang has been appointed as Chief Executive Officer of Malaysia, stepping down from his previous role as Chief Operating Officer. Mr. Tan Lau Ming, formerly Deputy COO, has been promoted to Group COO. Additionally, several executives have been redesignated to group-level positions, including the CEO, CFO, CPO, and CCO. These changes reflect the company’s strategic focus on enhancing its operational performance and growth, with the Board expressing confidence in the leadership capabilities of the newly appointed executives.

BRC Asia Limited Reports Strong Q3 2025 Financial Performance

BRC Asia Limited reported a robust financial performance for the third quarter ending June 30, 2025, with a revenue of S$408,856,000 and a profit after tax of S$21,829,000. The company’s strong cash flow from financing activities, amounting to S$63,547,000, contributed to a net increase in cash and cash equivalents, highlighting its solid financial management and strategic positioning in the market.