"Concerns from possible cooling measures impact are mitigated by genuine underlying pent-up demand and tailwinds from moderating interest rates, which will likely continue to support the residential market," says Natarajan in his March 17 note.
APAC Realty, which runs the ERA property agency, saw it FY2024 earnings dropped 39% y-o-y. Nonetheless, Vijay Natarajan of RHB Bank Singapore is keeping his "buy" call on this counter given its attractive valuation at 11x FY2025 earnings and a 7% dividend yield which should cushion downside risks.
Given strong earnings growth this year thanks to the strong resurgence in Singapore residential volume, Natarajan has raised his FY2025 earnings estimate by 8% and coming FY2026's by 7%, leading to a higher target price of 48 cents from 42 cents.
