Excerpts from CGSCIMB report APAC Realty (SGX: CLN)

• APAC Realty 1H22 EPS of 4.7 Scts was deemed broadly in line at 65.6% of our FY22F forecast.
• Higher new home sales income helped moderate a fall in resale and rental commissions.

Reiterate an Add rating with an unchanged TP of S$0.84. APAC Realty 1H22 results highlights The company reported 1H22 revenue of S$342.6m, -4.4% yoy while PATMI slipped 2.1% yoy to S$16.7m. The weaker yoy performance was largely due to a 19% yoy drop in total new, resale and HDB resale market volume transactions in 1H22. APAC’s overall market share stood at 40% as at 1H22. Gross profit was stable at S$35.3m as GP margin improved to 10.3% (vs. 9.8% in 1H21) due to a shift in revenue mix towards the higher yielding new home sales segment. Associates’ profit was S$0.3m vs. a S$0.3m loss a year ago, coming mainly from Vietnam. APAC declared an interim dividend of 3.5 Scts (75% payout ratio), translating to an annualised yield of c.10%....