1. p/e - 9 X
2. dividends - 4.5 cts (full year)
3. dividend yield - 7.3% on price of 61.5 cts.
4. nta - 40.3 cts
5. price 52 weeks - high $1.24, low $0.44, current - $0.61.5
6. cash - $43 mil
7. debt - $57.5
8. number of shares - 355 mil
9. profits - $24.2 mil
10. capitalisation - $218.4 mil
11. revenue - $419.9
Am vested bcoz of low p/e and high dividend yield. Company has dividend policy
of 50% or more for distribution. Will share more details if time permit.
During the oil crisis in 2014 shares of OCBC came all the way down to 7plus dollars.
2 to 3 years later oil stabilised n OCBC shot back to $14, almost a 100% appreciation.
Today, sentiments in the property market have been very bad since the cooling measures
in July 2018. Shares of almost all property stocks have been down.
The property market is cyclical in nature with each cycle lasting many years. At some
point in the future sentiments will change to positive. At that time shares of property stocks
are likely to shot up. When, nobody know for sure. But i assume there are similiarities in
situation like OCBC during the oil crisis.
This is one of the reasons I am into APAC Realty. To buy when sentiments are bad n to
wait till sentiments change to positive. Another reason is the high yield the company offer.
Its full year dividend of 4.5 cts give a dividend yield of 7.6 % based on today' s closing price
of 59 cts. Further, company has a dividend policy of distributing 50% or more of it' s earning.
I do not expect good result in the coming quarters or year n am expected to go long hold
on the stock. In the mean time I am content w the yield of 7% plus.
Propnex n APAC Realty are both fundamentally good companies. Both leaders in the property/realty market. However, i decided to put money into Apac over Propnex for the following ressons:
EXPANDING OUR RANGE OF SERVICES AND GEOGRAPHICAL PRESENCE IN ASIA PACIFIC
Having been entrusted with the exclusive ERA regional master franchise rights, we had long set our sights on growing APAC Realty's presence across Asia Pacific. Some notable developments this year include the new franchise agreement for Cambodia and the joint venture in Hainan, as well as the recent acquisitions in Indonesia and Thailand.
On 11 January 2019, we held a grand opening of the new ERA Hainan office, as well as a cross-country forum to bring together more than 200 division directors and associates from Singapore and Hainan, which is set to become China's largest free-trade zone following the government's plans to transform the region. It was encouraging to see the ERA network coming together in synergy and exchanging invaluable knowledge and skills learnt in the field.
A week prior to this, we conducted an exhibition in Beijing to raise the profile of ERA and encourage industry professionals to exchange insights on real estate marketing and its role in boosting productivity for the industry.
We were most delighted to announce our regional expansion plans for Indonesia and Thailand in February 2019. Through a partnership with the current ERA Indonesia CEO and management team, we have implemented ERA Singapore's project business model in Indonesia to generate stronger margins and growth in the near to medium term. Our progress has been promising, with ERA Indonesia being appointed as the lead marketing agent for the first phase of Fifty Seven Promenade, an integrated mixed-use and high-rise joint venture development by GIC Private Limited and PT Intiland Development Tbk ( Intiland). Further, ERA Indonesia has been chosen as one of the lead agencies for future projects rolled out by Intiland.
The incorporation of ERA Thailand allows APAC Realty to gain direct ownership of the Thailand franchise, enabling the Group to be strategically involved in growing the business and opening up project marketing opportunities for the Thailand market. Demand is expected to remain healthy especially for the downtown Bangkok condominium market, on the back of a recovering economy, rising middle class and strong buying interest from mainland China and Hong Kong.
Above write up is taken from APAC Realty annual report page 10 n 11.
Just sharing
Last edit: 5 years 7 months ago by josephyeo. Reason: paragraphing
