DBS upgrades PropNex and APAC Realty to ‘buy’ amid strong pipeline of new launches in 2025
In 2025 to 2026, the analysts also see nonpublic resell sales standing “stable” at 13,500 to 14,000 units. Sell-through rates can average between 30% to 50% throughout release week ends, which could assist a gradual turnaround in productivity for both companies.
Their brand-new target rate for PropNex is fixed to 15 times the company’s P/E on rolled-forward and revised FY2025 profits. PropNex’s FY2025 profits quotes were decreased to make up lesser overall sales and margins presumptions.
Tan and Foo have enhanced their target price estimates for both PropNex and APAC Realty to $1.15 and 50 cents from 95 cents and 48 cents respectively.
PropNex is the biggest real property firm in Singapore with about 12,000 agents making up 34% of the nation’s market share. APAC Realty is just one of the top competitors in the real estate brokerage market. It has a visibility in 17 Asia Pacific (APAC) nations and one of the biggest brand footprints in Asia through its ERA franchise business network.
The recoil will mainly be generated by three major aspects: lower home mortgage prices; house owners, upgraders and permanent people getting homes for themselves; in addition to the introduction of a wider selection of ventures with strong qualities.
The Arcady @ Boon Keng condominium
DBS Group Research has upgraded its appeals on PropNex and APAC Realty to “purchase” from “hold” as both counters are tipped to gain from a good pipeline of new release in 2025.
” We foresee a revive in total volumes in 2025, steered by brand-new sales returning to [near] 8,000-8,500 units annually. This is assisted by steady property rates, with changes assumed in the range of +1% to +2%,” state Derek Tan and Tabitha Foo in both files dated Jan 6.
At The Same Time, APAC Real estate’s new target price stands for a greater P/E multiple of 13 times in line with its four-year historical standard on rolled-forward FY2025 profits.
” We have transferred the multiple in the direction of +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 point,” the experts write.” [PropNex’s] FY2025/FY2026 dividend return of 7.7% (80% payment percentage) is attractive, with potential benefit if the team opts to allocate its cash money reserves (16 cents per share) to investors.”
” The group’s industry share in discreet new sales and resale has increased to 56% -60%, significantly more than pre-pandemic stages,” note Tan and Foo for PropNex particularly, including that these amounts suggest that one in every two sales is made by a PropNex agent. With this in mind, a potential surge in market share as PropNex adds to its sales force, would offer upside potential to the analysts’ assessments.
