RHB Bank Singapore has downgraded APAC Realty to neutral from buy with a new target price of 80 cents.

 

 

APAC Realty has announced that it is proposing a 1-for-5 bonus issue of new ordinary shares to reward shareholders as part of celebrating its eighth year of listing on the SGX Mainboard.

Subject to approval, entitled shareholders will receive one fully paid bonus share for every five ordinary shares held, says APAC Realty.

The increased number of issued shares after the proposed bonus issue will also enhance the trading liquidity of the company&rsquo s shares, it adds.

 

Assuming the bonus issue application to the SGX-ST is made on Sept 8, the lowest daily weighted average price of the shares in the preceding month would be 62.68 cents and the theoretical ex-bonus price is 52.23 cents accordingly.

APAC Realty says that this 1-for-5 bonus issue also follows a recent strong set of 1HFY2025 results, where the group&rsquo s revenue rose 28.8% y-o-y to $341.5 million, driven by robust brokerage income from new home sales, while earnings doubled to $11.3 million from higher transaction volumes in the residential market.

APAC Realty has a dividend payout ratio of 78.7%, and declared more than $124.6 million in dividends over the past eight years. On an annualised basis, the dividend yield for 1HFY2025 stood at 11.5%.