APAC Realty - CGS-CIMB Research 2022-06-17: Supported By Attractive Valuations & Yield

APAC Realty - Supported By Attractive Valuations & Yield

  • In its 1Q22 business update, APAC Realty (SGX:CLN) reported revenue of S$171.1m (+12% y-o-y). NPAT came in at S$9m (+20% y-o-y) and made up ~31% of our FY22F forecast. The better performance was due to higher new home brokerage, partly offset by lower resale and rental brokerage as well as other revenue. Gross profit rose 21.2% y-o-y to S$18.3m as gross profit margin remained relatively stable at 10.7%.
  • Overall, APAC Realty’s residential transaction market share (excluding leasing) in 1Q22 remained stable y-o-y at 37.9%.
  • Meanwhile, APAC Realty also saw its market share for new projects slipping to 30.3% in 1Q22.
  • We cut our FY22-24F earnings per share forecast for APAC Realty by 4.8%-12.9% to reflect a moderated market share for project marketing in those years. Accordingly, our target price for APAC Realty dips to S$0.84, based on an unchanged blend of net cash-adjusted P/E multiple and DCF valuation.
  • We believe APAC Realty's share price is likely supported by a projected FY22F dividend yield of 9%.

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.

LOCK Mun Yee CGS-CIMB Research | https://www.cgs-cimb.com 2022-06-17
SGX Stock Analyst Report ADD MAINTAIN ADD 0.84 DOWN 0.930

Previous report by CGS-CIMB:
2022-04-25 APAC Realty - Mandatory General Offer At S$0.57/share

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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