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lower PE compared to propnex, is it because of use of debt for APCA?
josephyeo ( Date: 24-Mar-2019 14:00) Posted:
Share some figures on Apac Realty:
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.
Not a buy/sell call. Dyodd |
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Hi like2learn ... thank you for your views n inputs. It' s appreciated.
I did take a look at both Propnex n Apac Realty before taking the
decision to put my money on Apac Realty. Both are fundamentally
good companies. In the end i opted for Apac Realty bcoz of its
higher dividend yield, higher nav, lower p/e n higher profits. Further, the
share price has dropped from a high of $1.24 to current 59 cts ... a 50% drop.
Propnex has some pluses ... no debt n higher cash level.
Pls note ... above are just my views n i could be wrong. Dyodd.
See below for some datas:
| |
propnex |
apac realty |
| dividend |
3.5 cts |
4.5 cts |
| dividend yield |
6.0 |
7.6 |
| price earning ratio |
11.2 |
8.6 |
| nav |
18.1 |
40.1 |
| net profit |
19.4 mil |
24.2 mil |
| revenue |
431.5 mil |
419.9 mil |
| number of shares |
370 mil |
355 mil |
| capitalisation |
216.4 mil |
209.6 mil |
| cash |
75.6 mil |
43.0 mil |
| debt |
nil |
57.5 mil |
| 52 weeks high |
79 cts |
124 cts |
| 52 weeks low |
45.5 cts |
44.0 cts |
| price at time of post |
58.5 cts |
59.0 cts |
I agree with your rationale and view of the current property mkt.
But APAC has 99M of intangible assets which forms a large portion of its assets. As such, there might not be sufficient margin of safety based on the current share price. The earnings visiblity is also uncertain given the likelihood of an election this year. If the govt adjusts some of its policies based upon election results, it may further negatively impact the property sentiments. Of course, if the govt repeats another solid victory, then its likely huat all the way.
But why not also consider propnex ? Its tangible assets are not as much and I think the boss ocassionally buys its shares(which may signal it' s undervalued).
*not vested in both*
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.
Just sharing my thoughts. Dyodd
Below are 2 research reports on Apac Realty.
https://research.sginvestors.io/2019/03/apac-realty-dbs-group-research-2019-03-01.html
https://research.sginvestors.io/2019/03/apac-realty-rhb-securities-research-2019-03-01.html
Just sharing ... dyodd
Share some figures on Apac Realty:
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.
Not a buy/sell call. Dyodd
