DBS upgrades PropNex and APAC Realty to ‘buy’ amid strong pipeline of new launches in 2025
PropNex is the largest property company in Singapore with around 12,000 representatives making up 34% of the nation’s market share. APAC Realty is just one of the leading competitors in the realty broker agent market. It has an existence in 17 Asia Pacific (APAC) places and among the largest label presences in Asia through its ERA franchise affiliate.
” The group’s industry share in private new sales and resale has actually boosted to 56% -60%, significantly higher than pre-pandemic levels,” note Tan and Foo for PropNex specifically, adding that these amounts show that one in every two sales is made by a PropNex representative. With this in mind, a possible surge in market share as PropNex adds to its sales force, would offer upside potential to the experts’ assessments.
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Their brand-new target rate for PropNex is fixed to 15 times the business’s P/E on rolled-forward and revised FY2025 earnings. PropNex’s FY2025 earnings quotes were lowered to make up lower entire sales and margins presumptions.
” We foresee a bounce back in overall quantities in 2025, driven by new sales returning to [around] 8,000-8,500 units every year. This is sustained by stable property rates, with variations expected in the range of +1% to +2%,” say Derek Tan and Tabitha Foo in both reports dated Jan 6.
In 2025 to 2026, the analysts also see nonpublic resell purchases remaining “secure” at 13,500 to 14,000 units. Sell-through rates can average between 30% to 50% throughout debut week ends, which can support a gradual turnaround in earnings for both agencies.
At The Same Time, APAC Realty’s new target cost represents a higher P/E multiple of 13 times in line with its four-year historical standard on rolled-forward FY2025 earnings.
DBS Group Research has actually upgraded its claims on PropNex and APAC Realty to “purchase” from “hold” as both counters are tipped to take advantage of a strong pipeline of new release in 2025.
” We have actually moved the multiple towards +1 standard deviation (s.d.) (versus [a] five-year average of 12 times), as the market and the company’s profitability go to an inflexion factor,” the analysts publish.” [PropNex’s] FY2025/FY2026 dividend turnout of 7.7% (80% payment percentage) is appealing, with potential upside if the group opts to distribute its cash money reservations (16 cents per share) to shareholders.”
an and Foo have boosted their target rate quotes for both PropNex and APAC Realty to $1.15 and 50 cents from 95 cents and 48 cents respectively.
The recoil will greatly be pushed by 3 main variables: reduced home loan fees; home owners, upgraders and long-term people acquiring homes for themselves; as well as the introduction of a wider array of projects with sturdy features.
