- APAC Realty (SGX:CLN)'s FY23 revenue declined 21% y-o-y to S$557.3m, which was in line with expectations. It was primarily attributable to a 47.8% fall in revenue from new homes (which have much higher margins than resale & rental), while expenses rose 10.8% y-o-y during the year.
- - Read this at SGinvestors.io -
- FY23 also saw modest non-operating income, compared to a non-operating expense recorded a year ago.
- Consequently, net profit fell 60% y-o-y to S$11.8m and net margin dipped significantly to 2.1% for the year compared to 3.8% for FY22.
HDB rental volumes emerged as the only bright spot.
- Transaction volumes for both new homes and resale experienced a y-o-y decline on the back of macroeconomic uncertainties and higher interest rates.
- For the rental market, transaction volumes for the private segment also dipped. In contrast, HDB rental transaction volumes grew y-o-y, which could be supported by private homeowners who have to observe a 15-month wait-out period before being eligible to acquire a resale HDB as well as a “trade-down” to HDB rentals given the elevated rental prices after the pandemic, though we are starting to see signs of easing.
Prices saw strong momentum in 4Q23.
- - Read this at SGinvestors.io -
- APAC Realty (SGX:CLN)'s FY23 revenue declined 21% y-o-y to S$557.3m, which was in line with expectations. It was primarily attributable to a 47.8% fall in revenue from new homes (which have much higher margins than resale & rental), while expenses rose 10.8% y-o-y during the year.
- Finance costs came in higher than expected amid the heightened interest rate environment.
- FY23 also saw modest non-operating income, compared to a non-operating expense recorded a year ago.
- Consequently, net profit fell 60% y-o-y to S$11.8m and net margin dipped significantly to 2.1% for the year compared to 3.8% for FY22.
- Transaction volumes for both new homes and resale experienced a y-o-y decline on the back of macroeconomic uncertainties and higher interest rates.
- For the rental market, transaction volumes for the private segment also dipped. In contrast, HDB rental transaction volumes grew y-o-y, which could be supported by private homeowners who have to observe a 15-month wait-out period before being eligible to acquire a resale HDB as well as a “trade-down” to HDB rentals given the elevated rental prices after the pandemic, though we are starting to see signs of easing.
- There were three project launches in the last quarter of 2023, which saw encouraging sell-through rates and achieved >S$2,000psf, on average.
- 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/.
Tabitha FOO DBS Group Research | Derek TAN DBS Research | https://www.dbs.com/insightsdirect/ 2024-03-01
Read also DBS's most recent report:
2025-01-06 APAC Realty - All Guns Blazing.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 Dividend Payout Dates & Corporate Actions,
APAC Realty News
