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ERA’s overseas entities (Indonesia, Thailand, Vietnam and Malaysia) were impacted by a market slowdown due to Covid-19 and were slightly loss-making for FY2020, notes Natarajan. Management, however, remains optimistic on the longer-term prospects of these markets and sees it as a long-term diversification strategy to mitigate the cyclicality of Singapore market, he adds. “We have revised up FY2021-2023F net profits by 10-12% factoring in strong momentum in residential sales but have also raised our weighted average cost of capital (WACC) by 40 bps to 8.5% to factor in an eventual risk of cooling measures.” Meanwhile, DBS Group Research analyst Ling Lee Keng has increased their target price to 61 cents from 53 cents, maintaining "buy" on the company. In a Feb 24 note, Ling deems the counter's valuations to be attractive, and overall market transaction value is expected to continue to grow. "As of Dec 31, 2020, there were 26,426 unsold units (including ECs). The vacancy rate of completed private residential units has increased to 7.0% as at Dec 31, 2020, from 5.5% a year ago. Apart from the 26,426 unsold units (including ECs) with planning approval as at Dec 31, 2020, there is a potential supply of 4,700 units (including ECs) from Government Land Sales (GLS) sites that have not been granted planning approval yet." As at 12.35pm, shares in APAC Realty are trading 1.5 cents higher, 3.53% up, at 44 cents.