Lim & Tan Securities
Date of Report: 01 September 2025
APAC Realty Surges Ahead: Robust Earnings and Optimistic Outlook Drive Singapore’s Real Estate Momentum

Introduction: APAC Realty Delivers Standout 1H25 Performance

APAC Realty, Singapore’s second-largest property brokerage, has delivered a stellar set of first-half FY2025 (1H25) results, significantly surpassing analyst expectations. Driven by surging new home sales and supported by resilient resale and rental volumes, the Group has positioned itself for continued growth through the rest of the year and beyond. Backed by strong financials, a high dividend payout, and a healthy pipeline of upcoming launches, APAC Realty stands out as a key beneficiary of Singapore’s buoyant property market.

Key Highlights from 1H25 Financial Results

• Revenue soared 29% year-on-year to S\$341.5 million, accounting for 55% of the full-year forecast.
• Gross profit climbed 46% to S\$35.8 million, with margins improving 1.3 percentage points due to greater contributions from high-margin new home sales.
• Net profit for 1H25 jumped 176% YoY to S\$11.3 million, representing 80% of the full-year forecast.
• Interim dividend tripled to 2.7 Singapore cents, translating to a 78% dividend payout ratio and a 3.7% interim yield.
• APAC Realty maintains a net cash position of S\$9.0 million, representing 3.4% of its market capitalization.

Stock Performance and Shareholder Overview

• APAC Realty’s share price rose 31.3% in the last month, 63.3% in the last three months, and a remarkable 98.7% over the past year.
• Currently trading at S\$0.735, the stock has a target price of S\$0.82, offering an 11.6% upside.
• Major shareholders include Morgan Stanley (64.1%) and Chua Khee Hak (8.3%).
• Market capitalization stands at S\$264 million, with 359.2 million shares outstanding.
• 52-week share price ranged between S\$0.79 and S\$0.365.

Business Overview: Regional Reach and Market Leadership

APAC Realty is a powerhouse in the property brokerage sector, handling both primary and secondary home sales in addition to rentals spanning residential, commercial, and industrial properties. The company holds exclusive ERA master franchise rights across 17 countries and territories in Asia Pacific, solidifying its position as Singapore’s second-largest real estate agency.

Financial Snapshot: Key Metrics and Projections

The Group’s financial trajectory is impressive, with significant upgrades to forecasted earnings for FY25F and FY26F—up 29% and 26% respectively—reflecting stronger-than-expected contributions from new home sales.

Market Drivers: New Launches and Government Land Sales Fuel Growth

Singapore’s property market is in the midst of a significant upswing, with new home sales at their highest since 2021. In 1H25 alone, 4,659 units were launched, with over 5,500 more expected in 2H25, bringing the annual total to more than 10,000 units—excluding Executive Condominiums (ECs).

• Estimated new home sales for FY25 are projected at 8,500–9,500 units, a 40% increase over 2024.
• Recent launches in July and August sold approximately 3,000 units, with some developments like LyndenWoods achieving a 94.5% take-up rate.
• Despite the introduction of Seller’s Stamp Duty measures in July, demand has remained robust.

Strategic Focus: Empowering Agents and Sustaining Growth

APAC Realty’s CEO, Marcus Chu, emphasizes a forward-looking strategy centered on agent empowerment and capitalizing on market opportunities to deliver long-term value. The Group’s established market position, exposure to high-margin new home sales, and strong upcoming project pipeline underpin its ability to maintain positive momentum into 2025 and beyond.

Valuation and Investment Case: Attractive Upside and Dividend Yield

APAC Realty is rated “Accumulate” with a revised target price of S\$0.82, up from S\$0.66, reflecting robust earnings upgrades and sector-leading profitability. At a current price of S\$0.70, the stock trades at 14.5x forward P/E and 1.6x P/B, boasting a 6.0% dividend yield based on a 78% payout ratio.

• Favorable market demand and lower mortgage rates support continued growth.
• APAC Realty benefits from a healthy pipeline of launches and a strong market position.
• The Group’s generous dividend payouts and net cash position further enhance its investment appeal.

Share Price History: Resilience Amid Market Volatility

APAC Realty’s share price has demonstrated resilience and growth, rebounding from property cooling measures in 2018 and 2021, as well as pandemic-induced volatility in 2020. Each major regulatory event has been met with robust business performance and shareholder rewards, including interim and special dividends.

Conclusion: APAC Realty Positioned for Sustainable Growth in Singapore’s Real Estate Market

APAC Realty’s outstanding 1H25 results and positive outlook underscore its strength as a leading real estate brokerage in Singapore. With a strong financial foundation, high dividend payout, and a favorable market environment, the Group is well-placed to capture future opportunities and deliver sustained value for investors.

Contact Details

Chan En Jie Tel: 6533 0595 Email: [email protected]

Disclaimer

This article is intended for informational purposes only and does not constitute investment advice. Investors are encouraged to consult their financial advisors before making any investment decisions.