- The sharp slowdown in new launches this year – resulting in weaker transaction volumes – is expected to hit APAC Realty (SGX:CLN)’s bottomline, as this (new home sales) is APAC Realty’s high-margin segment and a key contributor to earnings.
- - Read this at SGinvestors.io -
Cut FY24F net profit forecast by 28%.
- FY24F net profit forecast for APAC Realty cut by 28% to S$9m (-24% y-o-y), as we now expect new home sales volumes for the year to be 5-15% lower than that of last year (from our previous expectation of a slight growth).
- The key reason for this is the deferment of new launches, with only ~2,000 units being launched in 1H24 – as a result, year-to-date (May) new sales have slumped 48% y-o-y to 1,697 units. This comes on the back of a delay in getting planning and launch approvals, as well as weaker sentiment in the high-end segment, resulting in the postponement of certain projects by developers.
Raised FY25-26F net profit forecasts by ~5%.
- - Read this at SGinvestors.io -
- We have raised our FY25-26F net profit forecasts for APAC Realty by ~5%.
Resale & rental market segments relatively stable.
- Read more at SGinvestors.io.
Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2024-07-04
Previous report by RHB:
2024-03-08 APAC Realty - Transaction Volumes To Remain Soft.
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
