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RHB downgrades APAC Realty to ' neutral' on risk of policy intervention
RHB Group Research analyst Vijay Natarajan has downgraded his recommendation on APAC Realty to " neutral" despite the property group' s strong set of numbers in the 1HFY2021 ended June.
He has, however, upped his target price estimate to 88 cents from 70 cents previously.
" Considering the risk-reward profile, its FY2022 price-to-earnings (P/E) of 13 times is fair," he writes in an Aug 18 report.
To this end, he has also raised his net profit estimate for the FY2021 to FY2022 by 28% and 18% considering the strong volume in the residential sector.
That said, Natarajan says he expects earnings to peak in FY2021. He also expects earnings to decline by 15% in FY2022 on lower inventory levels and the release of pent-up demand.
He adds that there is a higher risk of policy measures implemented to cool the market " if the current exuberance persists" .
" The recent property market euphoria and price hikes raise policy intervention risk, in our view, with higher possibility of demand-side measures in the near term &ndash a key risk to APAC' s share price."
Ya lor.... whole mkt red.... sianz
Elf2000 ( Date: 19-Aug-2021 16:00) Posted:
| Jia lak Dow Jone future big Lau Sai again... |
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Jia lak Dow Jone future big Lau Sai again...
👍
satruz ( Date: 19-Aug-2021 12:05) Posted:
Unlikely cos APAC' s attractive dividend is coming soon on 30 Aug..... i' m expecting price to rise towards ex-D.....
Elf2000 ( Date: 19-Aug-2021 11:57) Posted:
| Wonder Propnex tomorrow xd will it drag down this counter further or not... |
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Unlikely cos APAC' s attractive dividend is coming soon on 30 Aug..... i' m expecting price to rise towards ex-D.....
Elf2000 ( Date: 19-Aug-2021 11:57) Posted:
| Wonder Propnex tomorrow xd will it drag down this counter further or not... |
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Wonder Propnex tomorrow xd will it drag down this counter further or not...
No more bullet to add liao☹
Analysts cool on APAC Realty, but still recommend PropNex
APAC Realty may risk being hit by cooling measures amid the recent property market euphoria, RHB said. Meanwhile, analysts at Lim & Tan Securities said PropNex has stronger financial metrics.
RHB downgraded its call on APAC Realty to " neutral" from " buy" , but raised its target price to S$0.88 from S$0.70, noting that its valuation - 13 times the broker' s estimates for its FY2022 earnings - is fair " considering the risk-reward profile" .
At the same time, Lim & Tan Securities has an " accumulate" call on PropNex with a target price of S$2.19, noting that the company' s fundamentals have not turned negative despite the pandemic, it said on Wednesday.
As at 2.48pm on Wednesday, shares of APAC Realty were trading at S$0.94, up S$0.01 or 1.1 per cent, while shares of PropNex were trading at S$1.92, up S$0.04 or 2.1 per cent.
Analysts at Lim & Tan Securities said it is justified that PropNex should continue to trade at a premium relative to APAC Realty, given that it is more than twice the size of the latter in terms of market capitalisation and is also a more attractive real estate broker. The analysts expect long-term growth potential for PropNex will be 13.5 per cent going forward.
The research team noted that PropNex has a higher return on equity and net profit than APAC Realty. The real estate broker also has a stronger balance sheet, with a net cash position of S$0.326 per share, compared to APAC Realty' s net debt position of S$10.4 million, or net gearing of 6.3 per cent.
Lim & Tan Securities is forecasting a 106 per cent growth in PropNex' s net profit for FY2021 to S$60.1 million. It also expects the company to pay a dividend of 11 cents per share for the full year, versus just 5.5 cents in FY2020. This would translate to a payout ratio of 67.7 per cent for FY2021, versus 70 per cent in FY2020.
Meanwhile, APAC Realty may be hit by demand-side measures in the near term amid strong sales in both the primary and private resale markets, as well as a series of price hikes, said RHB analyst Vijay Natarajan.
Furthermore, although APAC Realty " blew past market expectations with a strong set of Q2 numbers and a surprise big dividend payout" , earnings will likely peak this year due to reducing inventory levels and the release of pent-up demand, Mr Natarajan said.
He raised net profit estimates for the company by 28 per cent and 18 per cent in FY2021 and FY2022, respectively, to factor in the strong residential volume, but expects earnings will decline 15 per cent next year on falling inventory levels in the primary market.
Although it is standard T + 2, some brokers allow delay by at least another day and they will try to contact you to remind you about it
Max is delay for 2 days and they will force sell by 2pm on the 5th day if payment is still not received
But that will leave a record, and repeated delays will result in account suspension
jackass ( Date: 17-Aug-2021 11:52) Posted:
it' s quite funny looking at this stock ...
high volume for the past 2 days followed by subsequent selldown
seems like there are still many contra traders in SGX even though settlement time is now T+2  |
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it' s quite funny looking at this stock ...
high volume for the past 2 days followed by subsequent selldown
seems like there are still many contra traders in SGX even though settlement time is now T+2
After doubling revenue and earnings in 1H21, ' buy' APAC Realty on continued upswing
Strong demand and tight supply in Singapore' s property market has seen APAC Realty double both its earnings and revenue for the 1HFY2021 ended June 30. This volume transaction upswing is expected to continue for the company, writes CGS-CIMB Research analyst Lock Mun Yee.
In an Aug 13 note Lock is maintaining " add" on the company, with a raised target price of 96 cents, up from 94 cents previously. The new target price represents a 7.8% upside.
" Given the low interest rate environment and declining quantum of unsold inventory, we believe that buying interest should remain strong. With the majority of these projects located in the city fringe and suburban areas, we believe these projects are likely to be well-received when marketed, in our view. As such, we believe APAC' s performance should continue to benefit from the volume transaction upswing," says Lock.
The company has also planned to pay an interim dividend of 3.5 cents per share, plus a special dividend of 3 cents, for a total of 6.5 cents, representing a payout ratio of 73%.
Noting this " big dividend surprise" , Lock also notes that APAC Realty has established a policy of distributing 50- 80% of its profits as dividends, on a semi-annual basis.
APAC Realty is one of the leading players in the real estate brokerage industry in Asia. APAC Realty operates three main business segments: the real estate brokerage services franchise arrangements and training, valuation and other ancillary services. APAC Realty holds the exclusive ERA regional master franchise rights for 17 countries in Asia Pacific.
APAC Realty generated $220.1 million, or 61.7%, of its topline from commission income from resale and rental of properties in 1H20121. The 95% y-o-y surge was achieved through a 228.6% increase in private resale transaction volume and a 57.1% pick-up in HDB resale activity.
APAC Realty also indicated that its market share of residential sales transactions improved to 41.1% in 1H2021. In addition, the private rental market volume also improved 17.9% y-o-y in 1H2021. " Looking ahead, we believe that the resale residential market would likely remain robust, in tandem with the primary residential segment," writes Lock.
Meanwhile, DBS Group Research analyst Ling Lee Keng is also maintaining " buy" on APAC Realty, with a raised target price of $1.05 from 74 cents previously.
" This is on the back of the improvements in both the Covid-19 situation as more people are inoculated, and the economy. Though share price has gained about 90% YTD, it still lags peer' s Propnex performance of about 150% gain during the same period," writes Ling in an Aug 16 note.
Ling projects the transaction value for Singapore' s overall property market to grow by a " strong" 48% in FY2021F and another 6% in FY2022F. " This is revised up from our previous assumption of 27% in FY2021F and 3% in FY2022F, after 24% growth in FY2020. The positive market sentiment on the back of a low interest rate environment, healthy supply of projects, expectations of a gradual economic recovery and healthy housing demand is outweighing the Covid-19 impact."
According to Ling, APAC Realty is trading at an " attractive" 10.9 times FY2021F price-to-earnings ratio (P/E), which is near its five-year average P/E, and lower than its closest peer, Propnex, at 17 times.
As at 2.07pm, shares in APAC Realty are trading 0.5 cents higher, or 0.56% up, at 89.5 cents.
Crawling up.....
some analysts are upgrading this stock.....
DYODD
i foresee that the singapore property market will not have cooling measures anytime soon ...
Many BTOs are delayed, ppl are moving to buy resale houses
Meanwhile interest rates are at all time low, making bank loans favourable
Many whom lost their livelihoods and jobs in this current endemic have downgraded to a smaller house, such trend will continue as long as covid-19 is here ...
In any case, we need the property market to prop up our local GDP numbers
Look like will pullback before it go up...
pcxiao2008 ( Date: 16-Aug-2021 09:17) Posted:
| today apac can go beyond 95? |
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today apac can go beyond 95?
😀 👍
satruz ( Date: 13-Aug-2021 15:31) Posted:
I' m holding both lolx 
Elf2000 ( Date: 13-Aug-2021 15:26) Posted:
| Propnex share current price is $1.90 and paying 5.5cts good dividend, Apac Realty share price NOW is 89cts and paying 6.5cts if want to buy which one you prefer? |
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Hope that propnex can clear $2 soon
Elf2000 ( Date: 13-Aug-2021 15:26) Posted:
| Propnex share current price is $1.90 and paying 5.5cts good dividend, Apac Realty share price NOW is 89cts and paying 6.5cts if want to buy which one you prefer? |
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I' m holding both lolx
Elf2000 ( Date: 13-Aug-2021 15:26) Posted:
| Propnex share current price is $1.90 and paying 5.5cts good dividend, Apac Realty share price NOW is 89cts and paying 6.5cts if want to buy which one you prefer? |
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Propnex share current price is $1.90 and paying 5.5cts good dividend, Apac Realty share price NOW is 89cts and paying 6.5cts if want to buy which one you prefer?
Getting close..... 89 liao
satruz ( Date: 13-Aug-2021 13:30) Posted:
| Hope can hit 90 this afternoon |
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