APAC Realty’s FY17 net profit comfortably sailed past ours and
consensus estimates. It also managed to gain overall market share
despite increasing competition and a slight reduction in agent count. 2018
outlook looks promising with the company already securing 20 new
launches (11,268 units) until 9M18, higher than the total units clinched last
year. Resale volumes are also expected to benefit from higher new launch
prices. Dividends came in higher than expected with a 90% payout ratio
(guidance: 50%). Maintain BUY as we raise our TP to SGD1.35 (from
SGD1.20, 23% upside).
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