Broker Name: Lim & Tan Securities
Date of Report: 12 March 2026
Excerpt from Lim & Tan Securities report.
- APAC Realty’s FY25 results exceeded expectations, with revenue up 20% to S\$675.6mln and net profit surging 185% to S\$20.6mln, driven by a strong increase in new home sales and improved margins.
- The company declared a full-year dividend of 4.05 S cents, representing a 7.2% yield and 78% payout ratio, and remains backed by a net cash position of S\$13.4mln (5.5% of market cap).
- Private new home sales are expected to dip in 2026 to 9k–10k units due to a smaller launch pipeline, but this will be partially offset by higher EC launches, more commercial sales, and the addition of about 100 experienced agents from a competitor.
- Despite the projected decline, APAC Realty is expected to maintain healthy transaction activity, supported by resilient market demand and steady government land sales, while trading at 13.3x forward P/E with a forward dividend yield of 6.5%.
- The report maintains an “Accumulate” rating with a lowered target price of S\$0.66 (from S\$0.683, adjusted for bonus issue) based on 15.5x FY26F P/E, reflecting the slightly weaker outlook for 2026 but positive long-term fundamentals and strong dividend profile.
Report Summary
- APAC Realty posted strong FY25 results with robust new home sales, higher profits, and an increased dividend payout.
- While 2026 may see a moderation in new home sales and profits, ongoing market resilience, new agent additions, and a healthy cash position support APAC Realty’s positive outlook and attractive dividend yield.
Above is an excerpt from a report by Lim & Tan Securities. Clients of Lim & Tan Securities can be the first to access the full report from the Lim & Tan Securities website: https://www.limtan.com.sg
