SGX:CLN

Stock Analysis Report

Executive Summary

APAC Realty Limited, an investment holding company, provides real estate services in Singapore.

Rewards

Trading at 44.1% below its fair value

Earnings are forecast to grow 10.6% per year

Risk Analysis

Dividend of 10.1% is not well covered by earnings

Profit margins (3.7%) are lower than last year (5.9%)



Snowflake Analysis

Adequate balance sheet second-rate dividend payer.

Share Price & News

How has APAC Realty's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CLN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.0%

CLN

-2.1%

SG Real Estate

-1.4%

SG Market


1 Year Return

1.0%

CLN

-1.4%

SG Real Estate

0.7%

SG Market

Return vs Industry: CLN exceeded the SG Real Estate industry which returned -1.2% over the past year.

Return vs Market: CLN matched the SG Market which returned 1% over the past year.


Shareholder returns

CLNIndustryMarket
7 Day-2.0%-2.1%-1.4%
30 Day-1.0%0.6%0.3%
90 Day-5.8%3.2%1.9%
1 Year6.8%1.0%1.7%-1.4%4.8%0.7%
3 Yearn/a4.4%-3.8%13.7%1.6%
5 Yearn/a-2.0%-14.5%11.5%-7.2%

Price Volatility Vs. Market

How volatile is APAC Realty's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is APAC Realty undervalued compared to its fair value and its price relative to the market?

44.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CLN (SGD0.5) is trading below our estimate of fair value (SGD0.89)

Significantly Below Fair Value: CLN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CLN is poor value based on its PE Ratio (13.9x) compared to the Real Estate industry average (10.3x).

PE vs Market: CLN is poor value based on its PE Ratio (13.9x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: CLN is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: CLN is overvalued based on its PB Ratio (1.3x) compared to the SG Real Estate industry average (0.5x).


Next Steps

Future Growth

How is APAC Realty forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

10.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLN's forecast earnings growth (10.6% per year) is above the savings rate (1.8%).

Earnings vs Market: CLN's earnings (10.6% per year) are forecast to grow faster than the SG market (6.6% per year).

High Growth Earnings: CLN's earnings are forecast to grow, but not significantly.

Revenue vs Market: CLN's revenue (3.9% per year) is forecast to grow slower than the SG market (5.6% per year).

High Growth Revenue: CLN's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CLN's Return on Equity is forecast to be low in 3 years time (11.4%).


Next Steps

Past Performance

How has APAC Realty performed over the past 5 years?

10.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CLN has high quality earnings.

Growing Profit Margin: CLN's current net profit margins (3.7%) are lower than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: CLN's earnings have grown by 10.3% per year over the past 5 years.

Accelerating Growth: CLN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CLN had negative earnings growth (-54.9%) over the past year, making it difficult to compare to the Real Estate industry average (-7.2%).


Return on Equity

High ROE: CLN's Return on Equity (9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is APAC Realty's financial position?


Financial Position Analysis

Short Term Liabilities: CLN's short term assets (SGD102.4M) exceed its short term liabilities (SGD81.7M).

Long Term Liabilities: CLN's short term assets (SGD102.4M) exceed its long term liabilities (SGD60.5M).


Debt to Equity History and Analysis

Debt Level: CLN's debt to equity ratio (39.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if CLN's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CLN's debt is not well covered by operating cash flow (9.6%).

Interest Coverage: CLN's interest payments on its debt are well covered by EBIT (14.3x coverage).


Balance Sheet

Inventory Level: CLN has a low level of unsold assets or inventory.

Debt Coverage by Assets: CLN's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

What is APAC Realty's current dividend yield, its reliability and sustainability?

10.20%

Current Dividend Yield


Dividend Yield vs Market

company10.2%marketbottom25%2.5%markettop25%5.5%industryaverage3.1%forecastin3Years5.5%

Current dividend yield vs market & industry

Notable Dividend: CLN's dividend (10.1%) is higher than the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: CLN's dividend (10.1%) is in the top 25% of dividend payers in the SG market (5.41%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CLN has been paying a dividend for less than 10 years.

Growing Dividend: CLN's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (91.3%), CLN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CLN's dividends in 3 years are forecast to be covered by earnings (56.8% payout ratio).


Next Steps

Management

What is the CEO of APAC Realty's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average board tenure


CEO

Jack Chua (59yo)

7yrs

Tenure

0

Mr. Khee Hak Chua, also known as Jack, is an Executive Director at APAC Realty Ltd since September 04, 2017 and its Chief Executive Officer since 2013 and Executive Chairman since July 15, 2019. He joined  ...


Board Age and Tenure

2.3yrs

Average Tenure

55yo

Average Age

Experienced Board: CLN's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyS$11,45004 Mar 19
Khee Hak Chua
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares20,000
Max PriceS$0.57

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Raymond Loke

    Executive Vice President of Project Marketing

    • Chee Yong Poh (43yo)

      Chief Financial Officer

      • Jack Chua (59yo)

        Executive Chairman & CEO

        • Tenure: 7yrs
      • Eugene Lim (52yo)

        Key Executive Officer

        • Tenure: 17yrs
      • Kenny Tan

        Senior Vice President of Digital Marketing & Training

        • Doris Ong

          Chief Operating Officer

          • Marcus Chu

            Chief Operating Officer

            • Yoke Leng Leong

              Executive Vice President of Administration & Corporate Sales

              • Glen Hin

                Senior Vice President of Business Development

                • Jackson Ong

                  Senior Vice President of Property Management


                  Board Members

                  • Theng-Fong Hee (64yo)

                    Non-Executive Independent Director

                    • Tenure: 2.3yrs
                  • Eugene Wong (51yo)

                    Independent Non-Executive Director

                    • Tenure: 0.5yrs
                  • Bong Lin Tan (62yo)

                    Non-Executive Independent Director

                    • Tenure: 2.3yrs
                  • Choon Hong Tan (44yo)

                    Non-Executive Non-Independent Director

                    • Tenure: 6.5yrs
                  • Jack Chua (59yo)

                    Executive Chairman & CEO

                    • Tenure: 7yrs
                  • Tommy Teo (36yo)

                    Non-Executive Non-Independent Director

                    • Tenure: 3.3yrs
                  • Desmond Tan

                    Independent Non-Executive Director

                    • Tenure: 0.5yrs

                  Company Information

                  APAC Realty Limited's company bio, employee growth, exchange listings and data sources


                  Key Information

                  • Name: APAC Realty Limited
                  • Ticker: CLN
                  • Exchange: SGX
                  • Founded: 1982
                  • Industry: Real Estate Services
                  • Sector: Real Estate
                  • Market Cap: S$174.047m
                  • Shares outstanding: 355.20m
                  • Website: https://www.apacrealty.com.sg

                  Number of Employees


                  Location

                  • APAC Realty Limited
                  • No. 03-01 Mountbatten Square
                  • 229 Mountbatten Road
                  • Singapore
                  • 398007
                  • Singapore

                  Listings

                  TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                  CLNSGX (Singapore Exchange)YesOrdinary SharesSGSGDSep 2017

                  Biography

                  APAC Realty Limited, an investment holding company, provides real estate services in Singapore. It operates through three segments: Real Estate Brokerage Services; Franchise Arrangements; and Training, Valuation and Other Ancillary Services. The company offers property brokerage services for primary and secondary home sales, as well as for the rental of residential, commercial, and industrial properties under the ERA brand name. It also holds the ERA regional master franchise rights for 17 countries in the Asia Pacific; and franchise rights for Singapore for Coldwell Banker, a real estate office and franchising company in the United States. In addition, the company provides training programs and courses for real estate agents in preparation for professional certification exams; undertakes valuation works on behalf of clients, such as financial institutions, government agencies, and property owners; and provides management services for real estate developments. Further, it engages in the rental of properties, workstations, lockers, and furniture products; and provision of professional indemnity insurance, administration, and business conference services. The company was founded in 1982 and is headquartered in Singapore. APAC Realty Limited is a subsidiary of Asia Pacific Realty Holdings Ltd. 


                  Company Analysis and Financial Data Status

                  All financial data provided by Standard & Poor's Capital IQ.
                  DataLast Updated (UTC time)
                  Company Analysis2020/01/26 13:17
                  End of Day Share Price2020/01/24 00:00
                  Earnings2019/09/30
                  Annual Earnings2018/12/31


                  Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.