CGS International Securities
August 11, 2025
APAC Realty Ltd: Accelerating Growth Amid Singapore’s Booming Property Market
1H25 Earnings Outperform Expectations
APAC Realty Ltd has delivered a standout performance in the first half of 2025, riding the wave of strong market activity in Singapore’s residential property sector. The company reported a 1H25 earnings per share (EPS) of 3.14 Singapore cents, representing 96.2% of the full-year forecast and a remarkable 176.3% year-on-year (yoy) increase. Revenue surged 28.8% yoy to S\$341.5 million, primarily driven by an upswing in new home sales commissions. Profit after tax and minority interest (PATMI) leapt 176.4% yoy to S\$11.3 million, thanks to a favorable product mix skewed toward higher-yielding new home sales.
Gross profit margin for the period narrowed by 1 percentage point yoy to 10.5%. Overseas operations, particularly in Indonesia and Vietnam, comprised approximately 2.3% of the topline but remained a drag, posting a net loss due to Vietnam’s residential market slowdown. Nevertheless, APAC proposed an interim dividend per share (DPS) of 2.7 Singapore cents, translating to an 80% payout ratio.
Strong Performance in New Home Sales
– Revenue from new home sales commissions skyrocketed 126.6% yoy to S\$131.2 million in 1H25. – The surge was fueled by a 143% jump in primary home sales volumes, with a significant increase in the quantum of new launch units. – APAC’s market share by transaction volume in Singapore stood at an impressive 34% for the first half of 2025.
The company’s sales pipeline remains robust, with six projects (3,374 units) scheduled for launch from August to December 2025 and an additional 9,924 units anticipated in 2026. If these launches are fully rolled out, APAC is poised for continued growth in volume sales and new home sales revenue.
Resale & Rental Brokerage: Modest Growth, Expanding Agent Base
– Brokerage revenue from resale and rental grew slightly by 1.5% yoy to S\$206.7 million in 1H25. – Gains from higher private resale transactions were partially offset by a dip in HDB resale volume. – The agent salesforce declined 2.7% yoy to 8,649 as of January 2025 but rebounded to 8,885 agents by August 2025. This expansion is expected to further strengthen APAC’s market share and enhance resale and rental commissions for 2H25.
Management noted that Vietnam’s operating environment has improved recently, raising hopes for a better performance from overseas operations in the second half of the year.
Positive Outlook and Upgraded Target Price
CGS International Securities has raised its FY25-26 EPS estimates by 53.8%–60.5%, reflecting higher market volume assumptions and improved gross profit margins from a more favorable product mix. The target price for APAC Realty Ltd has been upgraded to S\$0.81, based on a blend of a net cash-adjusted FY25 P/E multiple of 10x and a five-year discounted cash flow (DCF) valuation.
Key catalysts for potential re-rating include:
Further market share gains in primary and secondary residential sectors through agent expansion.
Strengthening earnings momentum from Vietnam and Indonesia.
Risks remain, such as possible delays in property market recovery due to cooling measures and continued market share erosion.
Financial Summary Table
| Year Ended December |
2023A |
2024A |
2025F |
2026F |
2027F |
| Total Net Revenues (S\$m) |
557.3 |
561.0 |
723.5 |
784.9 |
819.8 |
| Operating EBITDA (S\$m) |
18.38 |
15.79 |
27.73 |
32.34 |
34.12 |
| Net Profit (S\$m) |
11.72 |
9.54 |
18.81 |
22.46 |
23.86 |
| Normalised EPS (S\$) |
0.033 |
0.027 |
0.053 |
0.063 |
0.066 |
| EPS Growth (%) |
(60.5%) |
(18.8%) |
97.1% |
18.9% |
5.1% |
| FD Normalised P/E (x) |
21.37 |
26.30 |
13.34 |
11.22 |
10.68 |
| DPS (S\$) |
0.025 |
0.021 |
0.038 |
0.045 |
0.048 |
| Dividend Yield (%) |
3.55 |
2.98 |
5.33 |
6.40 |
6.76 |
| EV/EBITDA (x) |
13.59 |
15.89 |
7.86 |
6.27 |
5.62 |
| Net Gearing (%) |
(0.5) |
0.1 |
(19.4) |
(27.3) |
(33.2) |
| P/BV (x) |
1.58 |
1.59 |
1.47 |
1.40 |
1.35 |
| ROE (%) |
7.4 |
6.0 |
11.5 |
12.8 |
12.9 |
Peer Comparison: Singapore Developers
| Company |
Bbg Ticker |
Rec. |
Price (S\$) |
Target Price (S\$) |
Market Cap (US\$ m) |
P/E FY24A |
P/E FY25F |
P/E FY26F |
P/BV FY24A |
P/BV FY25F |
Div. Yield FY24A (%) |
Div. Yield FY25F (%) |
RNAV Prem./(Disc.) |
| APAC Realty Ltd |
APAC SP |
Add |
0.71 |
0.81 |
195 |
26.3 |
13.3 |
11.2 |
1.59 |
1.47 |
3.0 |
5.3 |
n.a. |
| Capitaland Investment |
CLI SP |
Add |
2.77 |
4.30 |
10,749 |
29.1 |
16.9 |
15.8 |
1.02 |
0.97 |
4.3 |
4.3 |
-42% |
| City Developments |
CIT SP |
Add |
6.35 |
8.97 |
4,414 |
81.0 |
23.8 |
21.5 |
0.63 |
0.60 |
1.6 |
1.9 |
-61% |
| Frasers Property Limited |
FPL SP |
Add |
0.95 |
1.41 |
2,887 |
10.7 |
18.8 |
18.7 |
0.37 |
0.36 |
4.8 |
4.8 |
-63% |
| Hongkong Land Holdings Ltd |
HKL SP |
Hold |
6.14 |
4.91 |
13,385 |
33.1 |
20.1 |
19.5 |
0.45 |
0.44 |
3.7 |
3.9 |
n.a. |
| Propnex Ltd |
PROP SP |
Add |
1.61 |
1.25 |
927 |
29.1 |
19.0 |
18.6 |
9.65 |
9.25 |
4.8 |
5.0 |
n.a. |
| UOL Group |
UOL SP |
Add |
7.03 |
8.20 |
4,621 |
20.7 |
17.6 |
15.9 |
0.51 |
0.51 |
2.6 |
2.6 |
-49% |
The Singapore market average (FY24A-FY26F) P/E stands at 27.5x, 18.9x, and 17.8x, respectively, with dividend yields averaging 3.6%–3.7%.
Sustainability and ESG Initiatives
APAC Realty’s sustainability strategy is founded on three pillars: – Environmental: Commitment to clean energy and operations, targeting a 1.2% annual reduction in electricity consumption. – Social: Focused on developing people and communities through an innovative culture. – Governance: Strong risk culture and governance to ensure accountability.
Key highlights:
CEA disciplinary cases fell to 3 in FY24 from 7 in FY23.
Due to office relocation in Vietnam, the annual electricity emission reduction target was missed.
FY24 saw total emissions rise 27.8% to 540.28 tCO2e, including two new offices in Indonesia. Emissions intensity remained stable.
Solar panels on Singapore offices generated 130,340 kWh in FY24, with 99.4% used internally.
Water consumption dropped 9.5% yoy, and training hours per Singapore-based employee averaged 1.3 hours.
No premium or discount has been assigned in valuations for ESG achievements, but continued efforts could further boost operational efficiency and financial performance.
Balance Sheet and Key Ratios
APAC Realty’s financial position remains robust: – Total cash and equivalents projected to reach S\$73.1 million in 2025, rising to S\$103.1 million in 2027. – Shareholders’ equity forecasted at S\$170.5 million in 2025, increasing to S\$189.4 million by 2027. – Operating EBITDA margin expected to improve to 3.83% in 2025 and 4.16% by 2027. – Return on invested capital (ROIC) forecast to climb from 9.9% (2023) to 23.2% (2027).
Key Drivers for Revenue Growth
– Brokerage revenue from resale and rental: S\$505.4 million in 2025, rising to S\$556.9 million by 2027. – Brokerage revenue from project sales: S\$215.2 million in 2025, growing to S\$260.0 million in 2027.
Corporate Governance and Global Disclosure
The report provides a comprehensive overview of APAC Realty’s corporate governance, regulatory compliance, and international distribution, including disclaimers for various jurisdictions. It outlines the rating framework: – “Add”: Expected total return exceeds 10% in the next 12 months. – “Hold”: Expected total return between 0% and 10%. – “Reduce”: Expected total return below 0%.
Distribution statistics for the quarter ended June 30, 2025:
Add: 70.6%
Hold: 20.5%
Reduce: 8.9%
Conclusion: APAC Realty Positioned for Continued Outperformance
With record first-half results, aggressive agent expansion, a strong pipeline of new launches, and improving overseas operations, APAC Realty Ltd is well-positioned to capitalize on Singapore’s buoyant property market. The company’s commitment to sustainability and operational excellence underpins its long-term growth prospects, while an attractive dividend yield and upgraded target price offer compelling value for investors. Key risks remain, but the balance of evidence points to sustained momentum and further upside potential.
Major Shareholders
– NHPEA Ace Realty Company Ltd: 64.8% – Chua Kee Hak: 8.7%
APAC Realty’s continued focus on market share, agent growth, and sustainability makes it a standout in Singapore’s property sector, warranting close attention from investors and market watchers alike.
