APAC Realty - RHB Invest 2024-07-04: Downgrading 2024 Forecasts

• 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 SGinvestors.io

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