BRC Asia Limited *Official* (SGX:BEC)

Jupiter2017

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http://www.businesstimes.com.sg/companies-markets/brc-asia-reports-36-jump-in-q1-net-profit
BRC Asia reports 36% jump in Q1 net profit
Thu, Feb 08, 2018 - 6:45 PM Michelle Quah michquah@sph.com.sg

BRC Asia reported on Thursday a 36 per cent increase in its quarterly net profit.
The Singapore-listed steel player said its net profit attributable to shareholders rose to S$2.6 million for its fiscal first quarter ended Dec 31, 2017, from S$1.9 million the year before.
Its revenue increased 26 per cent year-on-year to S$100.9 million, which BRC Asia said was due to higher unit selling prices.
Its earnings per share went up to 1.39 cents, from 1.02 cents.
BRC Asia shares finished two cents higher at S$1.38 on Thursday.

price link: http://www.shareinvestor.com/fundamental/factsheet.html?counter=BEC.SI
 

Shion

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BRC Asia Q1 net profit falls by a quarter to S$9.6m

BRC Asia Q1 net profit falls by a quarter to S$9.6m

https://www.businesstimes.com.sg/companies-markets/brc-asia-q1-net-profit-falls-by-a-quarter-to-s96m

MAINBOARD-LISTED steel-reinforcement solutions provider BRC Asia has reported a 24 per cent decline in net profit for its fiscal first quarter on the back of lower revenue, and provisions.

In a business update on Wednesday, it said that its net profit for the three months ended Dec 31, 2020 fell to S$9.6 million from S$12.7 million in the year before, after recording provisions of S$13.2 million.

The provisions included S$7.9 million for onerous contracts recorded during the quarter, compared to a reversal of S$6.3 million in the year-ago period, from "sharp increases in global steel prices during the quarter".

Earnings per share fell 24 per cent to 4.12 Singapore cents, from 5.45 cents previously.

Revenue for Q1 FY2021 fell 6 per cent to S$213.4 million, mainly due to a reduction in sales volume, as Covid-19 safe-working and management measures continued to result in a slower pace of work for the construction sector, BRC said.

The company's chief executive officer, Seah Kiin Peng, said BRC has been focused on mitigating the negative impact on business arising from Covid-19 for the past year.

He noted that the group remains in good financial shape, with a recent placement used to repay outstanding bank borrowings, thus strengthening the group's balance sheet.

The group's net asset value per ordinary share rose to 117.23 Singapore cents as at Dec 31, 2020, from 113.38 cents as at Sept 30, 2020. BRC's sales order book stood at approximately S$1.09 billion as at Dec 31, 2020.

Mr Seah added: "In line with Phase 3 of Singapore's re-opening and a national effort to vaccinate the Singapore population, we remain cautiously optimistic towards the recovery of general economic activity and are confident that BRC will navigate through this trying time."

BRC shares rose 1.9 per cent or S$0.03 on Wednesday to close at S$1.61, before the announcement.
 

Perisher

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Looking back, this one from $80c to now $1.40 4-5 years with lots of up and down.
Not bad.
 

Shion

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BRC Asia FY2021 earnings up 131% to $45 mil, declares final and special dividend of 8 cents​


https://www.theedgesingapore.com/ca...l-declares-final-and-special-dividend-8-cents
Steel supplier BRC Asia has reported earnings of $47 million for the financial year ended Sept 30, up 131% y-o-y.

Revenue in the same period was up by 91% y-o-y to $1,17 billion, thanks to higher sales volume with the pick-up in construction activities, coupled with higher selling prices in tandem with increasing international steel prices.

The company’s bottomline enjoyed a boost from favourable currency movements as well.

Earlier this year, another listed company Hong Leong Asia, which has business in building materials as well, became BRC Asia’s key shareholder following an investment of $45.9 million.

The two companies will work together to explore new business opportunities.

BRC Asia plans to pay a final dividend of four cents and a special dividend, also of four cents. On top of the interim dividend already paid, the company will be paying a total of 12 cents per share, which translates into a payout ratio of around 60%.

“With improving fundamentals and a robust balance sheet, and a committed team of experienced professionals, we remain confident of dealing effectively with the changing landscape in our sector, and eventually emerge stronger,” says CEO Seah Kiin Peng

As at Sept 30, the company’s order book stood at $1.2 billion.

BRC Asia closed Nov 29 at $1.50 up 0.67% for the day and up 2.04% year to date.

@Perisher
 

Shion

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BRC Asia Q1 net profit up 38.8% at S$13.3m​


https://www.businesstimes.com.sg/companies-markets/brc-asia-q1-net-profit-up-388-at-s133m
STEEL solutions provide BRC Asia recorded S$13.3 million in net profit for the first quarter ended Dec 31, 2021, up 38.8 per cent from the year-ago period.

Revenue for the quarter stood at S$375 million, up 67.5 per cent from the S$213 million it posted a year ago, the company said in a business update on Wednesday (Feb 9).

As at Dec 31 last year, its sales order book stood at approximately S$1.3 billion. The duration of projects in the order book ranges up to 5 years.

The company noted that Singapore's total construction demand for 2022, as reported by the Building and Construction Authority, is expected to fall between S$27 billion and S$32 billion, "substantially more" than 2020's S$21 billion.

Sixty per cent of this demand is expected to come from the public sector.

A steady level of construction demand, coupled with the backlog of work created by the Covid-19 pandemic, is expected to raise total nominal construction output to up to S$32 billion for the year.

"This bodes well for reinforcing steel and BRC going forward, which are an integral part of the local construction supply chain," said BRC's chief executive officer Seah Kiin Peng in the update.

Shares of BRC Asia ended Wednesday up 1.24 per cent or S$0.02 at S$1.64 before the announcement.
 

Shion

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BRC Asia sees strong start to FY2022: Phillip Securities​


https://www.theedgesingapore.com/ca...a-sees-strong-start-fy2022-phillip-securities
Phillip Securities Research analyst Terence Chua maintains a ‘buy’ rating on steel supplier BRC Asia with an unchanged target price of $1.84.

“Our target price is based on 11 times FY2022e price-to-earnings ratio (P/E), still at a 15% discount to the 10-year historical average, on account of the uncertain environment,” says Chua.

In addition, BRC Asia’s 1QFY2022 net profit exceeded expectations, according to the analyst. “In spite of the resurgence of Covid-19 in Singapore, we estimate that order deliveries went up as disruptions to construction schedules were minimised with more frequent testing,” says Chua. “The 6.5% higher q-o-q sales (from the Group’s voluntary update) also came as a surprise because of the seasonally weaker 1H of the financial year.”
“Despite the strong beat, we are keeping our forecasts for FY2022e unchanged as we monitor the overall recovery of the construction sector,” he adds.

The company's order book inched up to $1.3 billion from $1.2 billion as the construction sector continues its recovery, says Chua. “We estimate that half of the order book will be fulfilled within the next 12-15 months,” he adds.

Moreover, BRC Asia benefitted from a free cash inflow of $132 million for the quarter, which was used to deleverage its balance sheet. “We believe a significant portion of the cash inflow was used to repay the trade facilities that it takes on to procure steel raw materials,” says Chua.

Despite the lower gearing ratio in 1Q22, the analyst still expects gearing for FY2022e-2023e to remain elevated as he forecasts firmer steel prices in 2022. This is because even though steel prices corrected by about 30% late last year, they have since rebounded by approximately 19% underpinned by prospects of strong demand supported by China’s plans of infrastructure investment in a bid to boost economic stability.

BCA Asia is also seen to benefit from better expectations of construction demand in Singapore this year. The Building and Construction Authority has upgraded its forecasts of Singapore's construction demand for 2022 to $27 billion-32 billion per year from the original $25 billion-32 billion per year, comparable with the preliminary estimates of $30 billion in 2021. Additionally, it also projects that demand for building materials will increase in tandem with the increased construction demand, according to the analyst. “Steel rebar demand is forecasted to grow to 1 million-1.2 million tonnes in 2022, representing ~22% y-o-y increase,” says Chua.

“We note that BCA’s forecasts for average construction demand in 2022-2025 excludes the development of Changi Airport Terminal 5 and expansion of the two integrated resorts. As our forecasts have not included these projects, there is upside if they go live,” Chua says.

In the near term, projects in the pipeline that will likely support the group’s growth are the Singapore Science Centre’s relocation, the Toa Payoh integrated development, Alexandra Hospital redevelopment, Bedok’s new integrated hospital, Phases 2-3 of the Cross Island MRT Line and the Downtown Line’s extension to Sungei Kadut.

“With an approximately 65% market share in the reinforced steel industry, we continue to see BRC Asia as a key beneficiary of the construction sector recovery,” Chua adds.

At 2:10pm, shares in BRC Asia are trading flat at $1.68.
 
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