In an Aug 11 report, analysts Tabitha Foo and Derek Tan say: “We expect APAC to deliver around 85% CAGR in net profit from FY2024-FY2026, driven by a recovery in new sales transaction volumes from a huge launch pipeline, which typically yield higher margins.”
DBS Group Research is keeping its “buy” call on APAC Realty, while significantly increasing its target price to 80 cents from 50 cents previously, following its recent 1HFY2025 ended June 30 results, which saw earnings surge 176.4% y-o-y to $11.3 million. Revenue was 28.8% higher y-o-y at $341.5 million.
The group says that this threefold increase in profitability is driven primarily by robust activity in the new private residential segment during the period. Revenue from new home sales more than doubled to $131.2 million, driven by a marked increase in transaction volumes, as developers sold 5,566 private residential units (including ECs) compared to 2,484 units in the same period last year.
