BRC Asia

Trade war tensions continue to rise, earnings season brings mixed results

SINGAPORE (May 20): Tensions between Washington and Beijing continue to rise as US President Donald Trump shows no inclination to de-escalate the country’s trade war with China. Trump believes his clash with Chinese President Xi Jinping is boosting his popularity ahead of next year’s election campaign. 

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BRC Asia 2Q earnings surge eightfold to $5.4 mil on higher sales

SINGAPORE (May 14): BRC Asia, the provider of steel reinforcement solutions, reported 2Q19 earnings surged eightfold to $5.4 million from $0.66 million in 2Q18.

This brings 1H19 earnings to $11.5 million, representing a near fourfold increase from $3.0 million in 1H18.

Following the group’s acquisition of Lee Metal Group on Jul 20 2018, the group has now included 100% of Lee Metal’s financial results in its earnings statement for 1H19 and 2Q19. In contrast, Lee Metal’s 1H18 and 2Q18 earnings were not included in the group’s results the same period last year.

BRC Asia offers 42 cents per share for all Lee Metal shares

SINGAPORE (Feb 21): BRC Asia is making a voluntary conditional cash offer of 42 cents a share for all the issued shares in Lee Metal Group.

The offer price represents a 2.4% premium over Lee Metal’s last traded price of 41 cents on Tuesday.

It is also a 32.9% premium above the volume weighted average price (VWAP) for the 12-month period prior to Lee Metal’s last undisturbed trading day on Nov 10, 2017, when an announcement was made regarding a notification by certain shareholders of an unsolicited approach in relation to their shares.

BRC Asia reports 36% rise in 1Q earnings to $2.6 mil on higher sales

SINGAPORE (Feb 8): BRC Asia, the provider of steel reinforcement solutions in Singapore, reported a 36% rise in 1Q earnings to $2.6 million from $1.9 million a year ago on higher sales.

Revenue rose 26% to $100.9 million from $80 million. Cost of sales increased 25% two $93.3 million. Gross profits increased 44% to $7.6 million while gross profit margin increased to 7.5% from 6.6%.

BRC Asia to resume trading of shares from Dec 1 after restoring free float

SINGAPORE (Nov 30): BRC Asia, the steel prefabrication firm, will resume trading of its shares with effect from 9am on Dec 1.

Trading in its shares had been suspended on Oct 31 after a takeover bid by Esteel Enterprise ended with Esteel holding a 95.83% in the firm.

To restore the 10% free float required under the listing rules of the Singapore Exchange, Esteel subsequently disposed a total of 12.9 million shares or 6.9% of its issued share capital to six independent and unrelated buyers at 95 cents each.

BRC Asia posts 75% drop in full-year earnings to $2.1 mil

SINGAPORE (Nov 29): Prefabricated steel reinforcement specialist BRC Asia saw its earnings tumble 75% to $2.1 million for the full year ended September, down from $8.3 million a year ago.

Revenue fell 10% to $311.6 million in FY17, from $346.8 million a year ago, despite higher selling prices. This was due to lower volume of steel delivered as a result of weaker construction demand.

Gross profit decreased 29% to $20.3 million in FY17, from $28.7 million a year ago, due to reduced sales volume and lower gross profit margin.

HG Metal proposes cash distribution from stake sale in BRC Asia and capital reduction exercise

SINGAPORE (Sept 25): HG Metal is proposing a capital reduction exercise to write off accumulated losses as well as a cash distribution to return to shareholders surplus capital from the sale of its BRC Asia stake.

On Sept 9, HG Metal had entered into a conditional agreement with Esteel Enterprise for the disposal of all 42.1 million BRC Asia shares held by the company at $0.925 each for nearly $39 million under a cash offer by Esteel Enterprise.

The net sale proceeds from the proposed disposal, after deducting all costs and expenses, is estimated to be $38.8 million.

HG Metals says it conducts regular reviews, but no approach yet for its stake in BRC Asia

SINGAPORE (June 2): Steel manufacturer HG Metal Manufacturing confirmed it has received a letter from Switzerland-based activist fund manager Quarz Capital Management.

In a filing on Thursday night, HG Metal says it “conducts regular reviews of the strategic options of the group from time to time [and that] certain issues raised in the Quarz letter have also been considered by the board in its engagement with the company’s shareholders during the company’s annual general meetings.”

BRC Asia earnings plunge 46% in FY16

SINGAPORE (Nov 24): Prefabricated steel reinforcement specialist, BRC Asia, has reported earnings of $8.3 million for FY16, a 46% decrease from the $15.4 million earnings seen in FY15.

For the year to September, revenue fell 10% to $346.8 million from lower unit selling prices which resulted from increased competition and lower steel prices, despite a higher volume of sales.

Gross margins remained unchanged at 8.3%.

Distribution costs fell from lower personnel costs and fewer prompt payment discounts to customers.

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