We have purchased 12,000 units of APAC Realty last week (7th December 2017) at $0.86. The IPO price was at $0.66, opened at $0.695 on 28th September 2017 and went as high as $0.975! At the point of writing this article, the price is currently at $0.865.
The latest 3rd Quarter financial statement was pretty good where the revenue till date for the year (9 months) improved by 30.3% and the profit by 64.6%!
In its IPO prospectus, using the adjusted 2016 EPS of 4.47 cents and IPO price of $0.66, the PE ratio was about 14.76. If we were to use a more conservative approach, we know the PE for 2016 is 4.47 so the EPS for the last quarter is probably 4.47 - 3.52 = 0.95. Assuming that the remaining 2017 (last quarter) would perform as good/bad as 2016, the full year EPS estimate would be around 5.78 + 0.95 = 6.73. At our entry price of $0.86, the PE ratio is at 12.78!
Alternatively, we can also estimate the EPS by averaging and extrapolating it to give 5.78 / 3 x 4 = 7.71. That would bring the PE ratio down to 11.15! If the market is willing to pay/value it at 14.76 PE initially, the price should go up to $0.99 to $1.14? Does this mean it is currently cheaper than it first IPO or it is a must buy? I do not know. lol. The above numbers are just estimations made by a regular IT guy based on one of the many financial ratios. Do take it with a pinch of salt :)
What we like about the business is that it is easy to understand - real estate brokerage services (commissions) and other revenue from training fees, franchise fees, etc.
The other revenue only contributes about 2-3% as compared to the core real estate brokerage services. Do you foresee Singapore property market recovering/getting better?
For more in-depth analysis, do read what the pros have written:
- Singapore IPOs: APAC Realty
- SmallCapAsia: APAC Realty
- SG Investors.io: DBS Research - $1.12
- SG Investors.io: RHB - $1.20
Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
The latest 3rd Quarter financial statement was pretty good where the revenue till date for the year (9 months) improved by 30.3% and the profit by 64.6%!
In its IPO prospectus, using the adjusted 2016 EPS of 4.47 cents and IPO price of $0.66, the PE ratio was about 14.76. If we were to use a more conservative approach, we know the PE for 2016 is 4.47 so the EPS for the last quarter is probably 4.47 - 3.52 = 0.95. Assuming that the remaining 2017 (last quarter) would perform as good/bad as 2016, the full year EPS estimate would be around 5.78 + 0.95 = 6.73. At our entry price of $0.86, the PE ratio is at 12.78!
Alternatively, we can also estimate the EPS by averaging and extrapolating it to give 5.78 / 3 x 4 = 7.71. That would bring the PE ratio down to 11.15! If the market is willing to pay/value it at 14.76 PE initially, the price should go up to $0.99 to $1.14? Does this mean it is currently cheaper than it first IPO or it is a must buy? I do not know. lol. The above numbers are just estimations made by a regular IT guy based on one of the many financial ratios. Do take it with a pinch of salt :)
 |
| Taken from RHB Research Report |
The other revenue only contributes about 2-3% as compared to the core real estate brokerage services. Do you foresee Singapore property market recovering/getting better?
For more in-depth analysis, do read what the pros have written:
- Singapore IPOs: APAC Realty
- SmallCapAsia: APAC Realty
- SG Investors.io: DBS Research - $1.12
- SG Investors.io: RHB - $1.20
Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
Jac Board model papers 2022 (mock exam papers) for class 12th students are available for free download in pdf format. These question papers are based on the most recent curriculum and are available on the Jac Board's official website. JAC 12th Model Paper 2022 Jac Board Model Papers 2022, Jac Board 12th Model Papers 2022, Jac Board class 12th Question Papers.
ReplyDelete