APAC Realty - DBS Research 2023-11-09: Still Adjusting To Cooling Measures

APAC Realty - Still Adjusting To Cooling Measures

APAC Realty (SGX:CLN) | SGinvestors.ioAPAC Realty (SGX:CLN)
  • For 3Q23, APAC Realty (SGX:CLN) registered net profit of S$2.6m (- 65% y-o-y, +29% q-o-q) on the back of the 20% y-o-y (+5.5% q-o-q) decline in revenue to S$145.9m. 3Q23 net margin of 1.8% is slightly better than the 1.5% in 2Q23 but much weaker than the 4.1% registered in 3Q22.

9M23 below expectations; margins still weak.

  • - Read this at SGinvestors.io -
  • Overall, APAC Realty's 3Q23/9M23 earnings account for 22%/63% of our forecasts, below expectations.

Transaction volume declined for all segments except EC; rental market mixed.

  • - Read this at SGinvestors.io -
  • For the rental market, the HDB segment recorded a 6% increase, but the private segment saw a 8.7% dip as compared to 9M22.

Smaller gain in 3Q23 price index for both private and HDB.

  • For 3Q23, the price index for private residential gained only 0.8% q-o-q, lower than the average quarterly increase of 2.1% in 2022, partly due to the Hungry Ghost Festival in mid-August to mid- September.
  • In 9M23, prices increased by 3.9%. October was also a quiet month, but we can look forward to another three projects – Hillock Green (474 units), J’Den (368 units), and Watten House (a80 units) – that are to be launched in 4Q23.
  • The 1.3% increase in the HDB price index is also lower than the average quarterly increase of 2.5% in 2022. Prices have increased by 3.8% for the 9M23 period.

More new home supply in the pipeline for 2024.

  • Read more at SGinvestors.io.

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/ 2023-11-09

Read also DBS's most recent report:
2024-03-01 APAC Realty - Modest Transaction Volume Growth Ahead.

Price targets by other brokers at APAC Realty Target Prices.

Listing of research reports at APAC Realty Analyst Reports.

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


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