APAC Realty - DBS Research 2021-11-15: Muted Growth Outlook

APAC Realty - Muted Growth Outlook

  • APAC Realty (SGX:CLN) reported a 139% y-o-y surge in 9M21 net profit to S$26.1m on 115% jump in revenue to S$537m, exceeding our expectations.
  • For 9M21, new homes sales (excluding ECs) increased 36% y-o-y to 10,009 units as compared to the 0.7% y-o-y increase for the whole of 2020.
  • We have raised APAC Realty's earnings forecast for FY21F/FY22F by 28%/12% as we increase the number of property transactions across all segments.
  • Our current target price for APAC Realty is reduced to S$0.88 (previously S$1.05) pegged to a lower P/E of 10x, its 4-year average, versus 14x (+1 standard deviation of its 4-year average) previously.
  • APAC Realty's earnings could taper and move sideways in the next one to two years. Furthermore, the stock is at risk of de-rating if property cooling measures are announced.

Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.

Lee Keng LING DBS Group Research | https://www.dbs.com/insightsdirect/ 2021-11-15
SGX Stock Analyst Report HOLD DOWNGRADE BUY 0.88 DOWN 1.050

Previous report by DBS Research:
2021-08-13 APAC Realty - Tailwind From Unfaltering Property Appetite

Check out the most recent target prices at APAC Realty Target Prices. Listing of analyst research reports at APAC Realty Analyst Report.

Relevant links:
APAC Realty Share Price History,
APAC Realty Announcements,
APAC Realty Dividends & Corp Actions,
APAC Realty News Articles


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