EC World Real Estate Investment Trust (BWCU) AI Stock Analysis

• Market Cap: S$226.75M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): N/A
• Revenue Growth: -55.98%
• EPS Growth: 76.02%
• Country: SG
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): -0.01
• Shares Outstanding: 809,838,260
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 0.04
• Price to Book (P/B): 7.07
• Price to Sales (P/S): 2.46
• P/FCF Ratio: 47.49
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: S$0.50 ▲(78.57% Upside)

The overall stock score is heavily influenced by the company's poor financial performance and valuation metrics. The lack of positive technical indicators further contributes to a low score. The absence of earnings call insights and corporate events means these factors do not impact the score.

Positive Factors

Strong Gross Profit Margins

High gross profit margins indicate effective cost control and operational efficiency, which can support long-term profitability despite current net losses.

Strategic Board Restructuring

Improved governance through board restructuring can enhance strategic decision-making and stakeholder confidence, positively impacting long-term market positioning.

Steady Cash Flow from Long-term Leases

Long-term leases with leading e-commerce companies ensure stable cash flow, supporting financial stability and enabling strategic investments.

Negative Factors

High Debt-to-Equity Ratio

Heavy reliance on debt financing poses risks to financial stability, potentially limiting flexibility for future investments or downturn resilience.

Declining Revenue

A consistent decline in revenue reflects challenges in market demand or competitive positioning, impacting long-term growth prospects.

Negative Net Profit Margin

Substantial net losses undermine financial health, indicating challenges in achieving profitability and necessitating strategic adjustments.

EC World Real Estate Investment Trust Business Overview & Revenue Model

Company Description

EC World Real Estate Investment Trust (BWCU) is a Singapore-based real estate investment trust that focuses on investing in income-producing real estate assets in China, primarily in the e-commerce logistics and supply chain sectors. The trust's portfolio includes a diverse range of logistics and industrial properties that support the growing e-commerce industry, catering to the increasing demand for efficient warehousing and distribution solutions. BWCU aims to provide stable returns to its unitholders through strategic acquisitions and active asset management.

How the Company Makes Money

EC World Real Estate Investment Trust generates revenue primarily through rental income from its portfolio of properties. The trust leases its logistics and industrial facilities to a mix of tenants, including leading e-commerce companies, which ensures a steady cash flow. Additionally, the company may benefit from long-term lease agreements that provide predictable income streams. Other revenue sources may include property management fees and potential capital appreciation from its real estate investments. Strategic partnerships with key industry players and ongoing demand for logistics space in China also contribute positively to its earnings potential.

EC World Real Estate Investment Trust Financial Statement Overview

Summary

EC World Real Estate Investment Trust is facing significant financial challenges, with declining revenues and substantial net losses. The high debt-to-equity ratio and negative return on equity indicate financial instability. Despite strong gross profit margins, the company's heavy reliance on debt and poor cash flow performance raise concerns about financial sustainability.

Income Statement

The income statement reveals a concerning trend with declining revenue and profitability. The revenue has decreased by 9.04% in the latest year, and the net profit margin is significantly negative at -70.34%, indicating substantial losses. The gross profit margin remains strong at 85.59%, suggesting efficient cost management, but the overall financial health is weakened by the negative net income.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 14.98, indicating heavy reliance on debt financing, which poses a risk in terms of financial stability. The return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. The equity ratio is low, suggesting limited equity buffer against liabilities.

Cash Flow

Cash flow analysis indicates a severe decline in free cash flow growth, down by 796.08%. The operating cash flow to net income ratio is very low at 0.64%, highlighting challenges in converting income into cash. However, the free cash flow to net income ratio is 1.0, suggesting that the company is able to maintain free cash flow despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.49M	92.21M	107.77M	121.57M	125.22M	109.48M
Gross Profit	39.70M	78.92M	95.54M	106.02M	106.31M	94.75M
EBITDA	-55.85M	69.44M	90.29M	64.34M	74.26M	67.23M
Net Income	-101.00M	-64.86M	-449.27M	10.11M	24.48M	15.42M
Balance Sheet
Total Assets	674.11M	887.08M	1.01B	1.67B	1.90B	1.82B
Cash, Cash Equivalents and Short-Term Investments	5.03M	4.51M	100.96M	113.83M	169.25M	53.65M
Total Debt	468.55M	480.38M	559.08M	593.14M	721.49M	683.83M
Total Liabilities	752.50M	855.02M	910.42M	1.06B	1.14B	1.10B
Stockholders Equity	-78.39M	32.06M	94.86M	606.99M	751.75M	715.51M
Cash Flow
Free Cash Flow	6.42M	4.78M	38.95M	93.56M	70.21M	81.06M
Operating Cash Flow	6.42M	4.78M	38.95M	93.56M	70.21M	81.06M
Investing Cash Flow	-1.55M	-1.64M	25.84M	53.62M	-375.00K	1.06M
Financing Cash Flow	-3.53M	-6.06M	-63.79M	-163.14M	-85.98M	-80.03M

EC World Real Estate Investment Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DHLU	73 Outperform	S$399.19M	13.29	5.87%	8.04%	-5.80%	-27.16%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
UD1U	65 Neutral	S$390.00M	29.59	1.69%	8.37%	-11.29%	―
OXMU	57 Neutral	$283.18M	93.81	0.38%	2.40%	-12.01%	―
CMOU	51 Neutral	$250.67M	-16.11	-2.12%	―	-1.55%	78.22%
BTOU	46 Neutral	$127.91M	-0.53	-48.17%	―	-27.66%	-106.71%
BWCU	38 Underperform	S$226.75M	-1.88	―	―	-55.98%	76.02%

EC World Real Estate Investment Trust Corporate Events

EC World REIT Faces Legal Challenges Over Unauthorized Mortgages

EC World Asset Management Pte. Ltd., manager of EC World Real Estate Investment Trust, has announced an update on ongoing legal proceedings concerning unauthorized mortgages over its properties in China. The People’s Court of Fuyang District dismissed the trust’s applications to invalidate these mortgages, prompting an appeal to the Hangzhou Intermediate People’s Court. Additionally, Fuyang Futoufa, a financial institution linked to the Fuyang Government, has initiated two separate legal cases against EC World’s subsidiaries, highlighting ongoing legal challenges for the trust.

EC World REIT Updates on Forchn Holdings Reorganization Efforts

EC World Asset Management Pte. Ltd., as the manager of EC World Real Estate Investment Trust, has updated its unitholders on the reorganization process of its sponsor, Forchn Holdings Group Co., Ltd. The update includes details of the first creditors’ meeting, where claims and plans were discussed, including ECW’s significant claims against the sponsor. The manager intends to support the proposed resolutions and participate in the creditors’ committee, although the success of the reorganization remains uncertain.