External broker reports(aggregated public sources), RHB Invest

RHB Invest

External broker reports(aggregated public sources)

RHB Investment Bank is one of the leading capital market players in Malaysia. Supported by an award-winning research team of experienced product specialists, RHB Group Investment Banking offers a full range of investment banking products and services covering primary markets, such as advisory (corporate & debt restructuring, mergers and acquisitions, takeovers), fundraising via both equity and debt instruments, and secondary markets including securities trading for both institutional and retail clients. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>APAC Realty's 1Q23 net profit missed expectations amid a sharp slowdown in residential transactions.</li><li>Recent cooling measures in April are expected to further dampen resale volume but new sales transactions should see a slight uptick in 2H23, supported by more new launches.</li><li>APAC Realty (SGX:CLN)'s 1Q23 net profit fell sharply by 67% y-o-y, impacted by a 48% decline in new home brokerage revenue on the back of lower new launches while resale and rental segment revenue declined by 13%.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

APAC Realty's 1Q23 net profit missed expectations amid a sharp slowdown in residential transactions.Recent cooling measures in April are expected to further dampen resale volume but new sales transactions should see a slight uptick in 2H23, supported by more new launches.APAC Realty (SGX:CLN)'s 1Q23 net profit fell sharply by 67% y-o-y, impacted by a 48% decline in new home brokerage revenue on the back of lower new launches while resale and rental segment revenue declined by 13%.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

APAC Realty - Weighed Down By Cooling Measures

Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Headquartered in Singapore, SooChow CSSD Capital Markets (Asia) is an investment bank focusing on emerging growth companies across Asia, providing a full suite of investment banking services, including corporate finance, mergers and acquisitions advisory, equity capital markets, institutional equities sales and trading and equities research.

SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<ul><li><a href="https://www.smartkarma.com/entities/cromwell-european-real-estate" target="_blank" data-smartkarma-citation="entities:25889" rel="noopener">Cromwell European REIT (CERT SP)</a> 2H21 DPU -2.8% YoY; Strong industrial/logistics performance dragged by Office segment</li><li><a href="https://www.smartkarma.com/entities/lippo-malls-indonesia-retail-trust" target="_blank" data-smartkarma-citation="entities:10946" rel="noopener">Lippo Malls Indonesia Retail Trust (LMRT SP)</a> 4Q21 DPU +125% YoY; Patchy road to recovery  </li><li><a href="https://www.smartkarma.com/entities/apac-realty-ltd" target="_blank" data-smartkarma-citation="entities:25900" rel="noopener">APAC Realty Ltd (APAC SP)</a> FY21 net profit +116% YoY; Final dividend of S$4.00c/share implies ~12% yield</li></ul>

Cromwell European REIT (CERT SP) 2H21 DPU -2.8% YoY; Strong industrial/logistics performance dragged by Office segmentLippo Malls Indonesia Retail Trust (LMRT SP) 4Q21 DPU +125% YoY; Patchy road to recovery  APAC Realty Ltd (APAC SP) FY21 net profit +116% YoY; Final dividend of S$4.00c/share implies ~12% yield

ASEAN Builder's Scoop (23Feb22) - CERT Robust Logistics Dragged by Office

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

<figure class="editor-figure mceNonEditable"><img src="https://api2.sgx.com/sites/default/files/2021-11/Capture_13.PNG" class="editor-image img-responsive"></figure>
<div class="content-caption">ERA - CEO</div>

Over the course of Marcus Chu’s 25-year-long career in the real estate marketing industry, one encounter remains etched in his memory - the sale of a four-room HDB flat in Bishan to a mother. “That was my very first deal - the buyer was keen to relocate to be near her children’s school,” recalled the Chief Executive Officer of SGX-listed real estate services provider APAC Realty Ltd. “I worked hard to seal the transaction to the client’s satisfaction, and this resulted in follow-on and referral businesses from the client after that.” “That was the first lesson I learnt - if you treat your client as a friend, and go that extra mile to deliver results, your client will be your strongest advocate. Reputation and integrity are key drivers of success in our business.” The dynamic nature of the real estate marketing business is another element that continues to capture Chu’s focus and interest. “The job of a trusted real estate adviser is exciting and fulfilling - no two deals are the same, as we have to handle different stakeholders and properties,” he pointed out. “In light of this, we have to deliver best-in-class service to clients by helping them achieve the best possible transaction experience. This requires up-to-date knowledge of the market, integrity and professionalism.” The 55-year-old was appointed CEO of APAC Realty, effective 1 July 2021. Prior to his appointment, he was APAC Realty’s Chief Operating Officer, responsible for the daily operations of ERA Realty, a wholly owned subsidiary of APAC Realty. Chu first joined ERA Realty in 1996 as a budding property adviser, and in subsequent years, established stellar records as the Top Sales Achiever in ERA Singapore and ERA International.&nbsp; Listed on SGX Mainboard since 2017, APAC Realty is a leading real estate services provider, holding the exclusive ERA regional master franchise rights for 17 countries in Asia Pacific.&nbsp; Through this franchisee network, the Group has one of the largest brand footprints in Asia, with close to 19,400 salespersons across 648 offices, and is one of the biggest ERA Member Brokers globally by transaction value. APAC Realty has a market-leading position in the Singapore real estate brokerage business through ERA Realty Network. Established in 1982, ERA Realty is one of Singapore’s largest real estate agencies with more than 8,100 salespersons, providing property brokerage services for primary and secondary home sales, as well as rental of residential, commercial and industrial properties. Another wholly owned subsidiary, Realty International Associates, also operates training programmes and courses for real estate salespersons in preparation for professional certification exams, and as part of continuing professional development regulations. It also undertakes valuation work on behalf of clients, and provides management services for property developments. Digital Revolution Looking back, Chu believes his strategy to drive the Group’s digital transformation helped to reinforce ERA Realty’s market-leading position in the industry. “We’re currently in the throes of the fourth industrial revolution, in which technology will change the way we live, work and relate to one another,” he pointed out.&nbsp; “I saw the urgent need for ERA to lead the industry with digital initiatives, so I introduced a number of proptech programmes that enabled our trusted advisers to deliver exceptional service and quality advice. This helped them compete effectively in an increasingly challenging environment.” In particular, Chu spearheaded the conceptualisation and development of RealtyWatch, ERA’s new-to-market CRM tech tool. RealtyWatch is the first and only client-agent-enabling CRM tool in the industry, offering 24/7 updates on the latest neighbourhood property transactions.&nbsp; It has now evolved into an everyday super app, where some of the Group’s proprietary tech tools are made available to consumers to help them better understand home buying and selling options. RealtyWatch also complements a range of proprietary applications developed under Chu’s leadership, including the iERA mobile app, FindPropertyAgent.sg, Agent Review Portal, Robo Advisor, and Property Calculator.&nbsp; “It’s important to note that while process automation and artificial intelligence can make the process of buying and selling properties seamless, and increase the overall productivity of trusted advisers, they will not replace the invaluable human factor in the search and transaction process,” he noted. Ultimately, the Group’s digital transformation enables its salespeople to raise their professional competency and build stronger client relationships. “This is in keeping with ERA’s commitment to being first in service, first in results and first in customer service,” he added. Likewise, in terms of vision and strategy, ERA aims to be Asia Pacific’s leading real estate agency by providing cutting-edge solutions and services to clients. “This will position us as the real estate agency of choice amongst discerning customers in our markets of operation,” Chu said.&nbsp; “We’re also differentiated from our competitors by our regional expansion strategy – we have interest in and management control of ERA Indonesia, Thailand, Vietnam and Malaysia. Although these markets have been affected by the pandemic, we believe these investments will prevail and thrive in a post-COVID-19 era, given their established brand names, strong reputation and quality sales teams.” Adaptable Resilience In particular, COVID-19 has taught the Group many lessons. “The waves of uncertainty and challenges brought about by the pandemic have tested our resilience and ability to adapt, as well as the way we conduct our business,” he said. During Singapore’s Circuit Breaker period last year, the Group took the opportunity to enhance the competitive edge of its trusted advisers, stepping up the training curriculum to allow its people to take advantage of the downtime by expanding their knowledge and sharpening their skills. The proprietary online programs ranged from specialised topics under ERA’s Ultimate Agent Training roadmap, to coaching sessions on marketing technologies such as 360 virtual tours, video marketing and Zoom viewings. “To overcome the issue of safe management measures, we learnt to do things in new ways, such as leveraging on virtual tours to bridge the physical divide. We also used digital signatures and online submissions of documents to complete transactions,” Chu noted. “All these proved to be vital as it allowed us to benefit from a robust property market during the pandemic. Real estate demand was strong, driven by greater liquidity, a favourable interest-rate environment and higher income amongst certain segments of the population.” Singapore developers sold 7,601 private residential units in the first six months of 2021, up 68.1% from 4,523 units sold in the same period last year.&nbsp;In 1H2021, the private residential resale market recorded sales of 10,090 units, up 228.6% year-on-year, while the HDB resale market grew 57.1% year-over-year to 14,644 units.&nbsp; ERA maintained a healthy 41.1% share of Singapore’s residential property market in 1H2021, compared with 38.4% in 1H2020.&nbsp; Meanwhile, being a people business, APAC Realty’s Environmental, Sustainability and Governance (ESG) efforts are largely focused on engagement with stakeholders. “We seek to enhance our performance in line with the Global Reporting Initiative (GRI) framework, especially in areas such as ethics and integrity. We take a strong stance against corruption, and do not tolerate any statutory non-compliance or wrongdoing by staff in the course of their work,” Chu noted. “The well-being of our clients and reputation of the Group are above all else. Running a business is like running a marathon - we’ve been around for almost 40 years and will be around for the next 40, with proper ESG practices in place.” For this father of three children aged 15 to 25, self-improvement and talent development remain passions in life. “I’m always looking to challenge myself and grow my knowledge. Conversations with different people from different industries can open doors and broaden horizons,” he noted. “The same applies to those who work around me. By nurturing their strengths and developing their potential, I’m cultivating a significant change in their lives and uplifting their careers.” Last but not least, his advice to his team mates is: Never fear adversity.&nbsp; “Looking back on my career journey thus far, I’ve had plenty of ups and downs. But everything has happened for a reason, and it was always for the better in the long run,” he said. “So, always view challenges as opportunities to progress and grow to greater heights - there’s no such thing as failure, only a temporary setback from achieving success. The next chapter of our journey promises to be an exciting one, as we work together to deliver growth and value for our stakeholders.” APAC Realty APAC Realty is a leading real estate services provider, holding the exclusive ERA regional master franchise rights for 17 countries in Asia Pacific. Through its ERA franchisee network, the Group has one of the largest brand footprints in Asia with more than 18,400 trusted advisors across 645 offices, and is one of the largest ERA Member Brokers globally by transaction value. The Group has a market-leading position in the Singapore real estate brokerage business through its wholly owned subsidiary ERA Realty Network Pte Ltd. Established in 1982, ERA Realty is one of Singapore’s largest real estate agencies with more than 8,150 trusted advisors as at 30 June 2021. The Group also holds the master franchise rights for Coldwell Banker in Singapore. The Group’s wholly owned subsidiary, Realty International Associates Pte Ltd, operates training programmes and courses for real estate trusted advisors in preparation for professional certification exams and as part of continuing professional development regulations. RIA also undertakes valuation work on behalf of clients such as financial institutions, government agencies and property owners, and provides management services for real estate developments. The company website is: <a href="http://www.apacrealty.com.sg/" target="_blank" rel="noopener">www.apacrealty.com.sg/</a> Click&nbsp;<a href="https://www.sgx.com/securities/equities/CLN" target="_blank" rel="noopener">here&nbsp;</a>for the company's StockFacts page. For the six months ended 30 June 2021 financial results, click&nbsp;<a href="https://links.sgx.com/1.0.0/corporate-announcements/RHNGDS3M6NEND0XR/678407_APAC%20Realty%201H2021%20NR%20-%2012%20Aug%202021.pdf" target="_blank" rel="noopener">here</a>. &nbsp;
About&nbsp;kopi-C: the Company brew
Text: Jennifer Tan-Stanisic Photo: Company file kopi-C&nbsp;is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations. For previous editions of&nbsp;kopi-C: the Company brew,&nbsp;please click&nbsp;<a href="https://www.sgx.com/research-education/market-dialogues" target="_blank" rel="noopener">here</a>. &nbsp; For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to&nbsp;<a href="https://www.sgx.com/jennifer.t@sgx.com" target="_blank" rel="noopener">jennifer.t@sgx.com</a>.


ERA - CEO

Over the course of Marcus Chu’s 25-year-long career in the real estate marketing industry, one encounter remains etched in his memory - the sale of a four-room HDB flat in Bishan to a mother.  “That was my very first deal - the buyer was keen to relocate to be near her children’s school,” recalled the Chief Executive Officer of SGX-listed real estate services provider APAC Realty Ltd. “I worked hard to seal the transaction to the client’s satisfaction, and this resulted in follow-on and referral businesses from the client after that.”  “That was the first lesson I learnt - if you treat your client as a friend, and go that extra mile to deliver results, your client will be your strongest advocate. Reputation and integrity are key drivers of success in our business.”  The dynamic nature of the real estate marketing business is another element that continues to capture Chu’s focus and interest. “The job of a trusted real estate adviser is exciting and fulfilling - no two deals are the same, as we have to handle different stakeholders and properties,” he pointed out.  “In light of this, we have to deliver best-in-class service to clients by helping them achieve the best possible transaction experience. This requires up-to-date knowledge of the market, integrity and professionalism.”  The 55-year-old was appointed CEO of APAC Realty, effective 1 July 2021. Prior to his appointment, he was APAC Realty’s Chief Operating Officer, responsible for the daily operations of ERA Realty, a wholly owned subsidiary of APAC Realty.  Chu first joined ERA Realty in 1996 as a budding property adviser, and in subsequent years, established stellar records as the Top Sales Achiever in ERA Singapore and ERA International.&nbsp;  Listed on SGX Mainboard since 2017, APAC Realty is a leading real estate services provider, holding the exclusive ERA regional master franchise rights for 17 countries in Asia Pacific.&nbsp;  Through this franchisee network, the Group has one of the largest brand footprints in Asia, with close to 19,400 salespersons across 648 offices, and is one of the biggest ERA Member Brokers globally by transaction value.  APAC Realty has a market-leading position in the Singapore real estate brokerage business through ERA Realty Network. Established in 1982, ERA Realty is one of Singapore’s largest real estate agencies with more than 8,100 salespersons, providing property brokerage services for primary and secondary home sales, as well as rental of residential, commercial and industrial properties.  Another wholly owned subsidiary, Realty International Associates, also operates training programmes and courses for real estate salespersons in preparation for professional certification exams, and as part of continuing professional development regulations. It also undertakes valuation work on behalf of clients, and provides management services for property developments.  Digital Revolution  Looking back, Chu believes his strategy to drive the Group’s digital transformation helped to reinforce ERA Realty’s market-leading position in the industry.  “We’re currently in the throes of the fourth industrial revolution, in which technology will change the way we live, work and relate to one another,” he pointed out.&nbsp;  “I saw the urgent need for ERA to lead the industry with digital initiatives, so I introduced a number of proptech programmes that enabled our trusted advisers to deliver exceptional service and quality advice. This helped them compete effectively in an increasingly challenging environment.”  In particular, Chu spearheaded the conceptualisation and development of RealtyWatch, ERA’s new-to-market CRM tech tool. RealtyWatch is the first and only client-agent-enabling CRM tool in the industry, offering 24/7 updates on the latest neighbourhood property transactions.&nbsp;  It has now evolved into an everyday super app, where some of the Group’s proprietary tech tools are made available to consumers to help them better understand home buying and selling options.  RealtyWatch also complements a range of proprietary applications developed under Chu’s leadership, including the iERA mobile app, FindPropertyAgent.sg, Agent Review Portal, Robo Advisor, and Property Calculator.&nbsp;  “It’s important to note that while process automation and artificial intelligence can make the process of buying and selling properties seamless, and increase the overall productivity of trusted advisers, they will not replace the invaluable human factor in the search and transaction process,” he noted.  Ultimately, the Group’s digital transformation enables its salespeople to raise their professional competency and build stronger client relationships. “This is in keeping with ERA’s commitment to being first in service, first in results and first in customer service,” he added.  Likewise, in terms of vision and strategy, ERA aims to be Asia Pacific’s leading real estate agency by providing cutting-edge solutions and services to clients. “This will position us as the real estate agency of choice amongst discerning customers in our markets of operation,” Chu said.&nbsp;  “We’re also differentiated from our competitors by our regional expansion strategy – we have interest in and management control of ERA Indonesia, Thailand, Vietnam and Malaysia. Although these markets have been affected by the pandemic, we believe these investments will prevail and thrive in a post-COVID-19 era, given their established brand names, strong reputation and quality sales teams.”  Adaptable Resilience  In particular, COVID-19 has taught the Group many lessons. “The waves of uncertainty and challenges brought about by the pandemic have tested our resilience and ability to adapt, as well as the way we conduct our business,” he said.  During Singapore’s Circuit Breaker period last year, the Group took the opportunity to enhance the competitive edge of its trusted advisers, stepping up the training curriculum to allow its people to take advantage of the downtime by expanding their knowledge and sharpening their skills.  The proprietary online programs ranged from specialised topics under ERA’s Ultimate Agent Training roadmap, to coaching sessions on marketing technologies such as 360 virtual tours, video marketing and Zoom viewings.  “To overcome the issue of safe management measures, we learnt to do things in new ways, such as leveraging on virtual tours to bridge the physical divide. We also used digital signatures and online submissions of documents to complete transactions,” Chu noted.  “All these proved to be vital as it allowed us to benefit from a robust property market during the pandemic. Real estate demand was strong, driven by greater liquidity, a favourable interest-rate environment and higher income amongst certain segments of the population.”  Singapore developers sold 7,601 private residential units in the first six months of 2021, up 68.1% from 4,523 units sold in the same period last year.&nbsp;In 1H2021, the private residential resale market recorded sales of 10,090 units, up 228.6% year-on-year, while the HDB resale market grew 57.1% year-over-year to 14,644 units.&nbsp;  ERA maintained a healthy 41.1% share of Singapore’s residential property market in 1H2021, compared with 38.4% in 1H2020.&nbsp;  Meanwhile, being a people business, APAC Realty’s Environmental, Sustainability and Governance (ESG) efforts are largely focused on engagement with stakeholders.  “We seek to enhance our performance in line with the Global Reporting Initiative (GRI) framework, especially in areas such as ethics and integrity. We take a strong stance against corruption, and do not tolerate any statutory non-compliance or wrongdoing by staff in the course of their work,” Chu noted.  “The well-being of our clients and reputation of the Group are above all else. Running a business is like running a marathon - we’ve been around for almost 40 years and will be around for the next 40, with proper ESG practices in place.”  For this father of three children aged 15 to 25, self-improvement and talent development remain passions in life.  “I’m always looking to challenge myself and grow my knowledge. Conversations with different people from different industries can open doors and broaden horizons,” he noted.  “The same applies to those who work around me. By nurturing their strengths and developing their potential, I’m cultivating a significant change in their lives and uplifting their careers.”  Last but not least, his advice to his team mates is: Never fear adversity.&nbsp;  “Looking back on my career journey thus far, I’ve had plenty of ups and downs. But everything has happened for a reason, and it was always for the better in the long run,” he said.  “So, always view challenges as opportunities to progress and grow to greater heights - there’s no such thing as failure, only a temporary setback from achieving success. The next chapter of our journey promises to be an exciting one, as we work together to deliver growth and value for our stakeholders.”   APAC Realty  APAC Realty is a leading real estate services provider, holding the exclusive ERA regional master franchise rights for 17 countries in Asia Pacific. Through its ERA franchisee network, the Group has one of the largest brand footprints in Asia with more than 18,400 trusted advisors across 645 offices, and is one of the largest ERA Member Brokers globally by transaction value. The Group has a market-leading position in the Singapore real estate brokerage business through its wholly owned subsidiary ERA Realty Network Pte Ltd. Established in 1982, ERA Realty is one of Singapore’s largest real estate agencies with more than 8,150 trusted advisors as at 30 June 2021. The Group also holds the master franchise rights for Coldwell Banker in Singapore. The Group’s wholly owned subsidiary, Realty International Associates Pte Ltd, operates training programmes and courses for real estate trusted advisors in preparation for professional certification exams and as part of continuing professional development regulations. RIA also undertakes valuation work on behalf of clients such as financial institutions, government agencies and property owners, and provides management services for real estate developments.  The company website is: www.apacrealty.com.sg/  Click&nbsp;here&nbsp;for the company's StockFacts page.  For the six months ended 30 June 2021 financial results, click&nbsp;here.  &nbsp;
About&nbsp;kopi-C: the Company brew
Text: Jennifer Tan-Stanisic Photo: Company file  kopi-C&nbsp;is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations.  For previous editions of&nbsp;kopi-C: the Company brew,&nbsp;please click&nbsp;here. &nbsp;  For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to&nbsp;jennifer.t@sgx.com.

APAC Realty: Developing a Differentiated Edge

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<a href="https://www.smartkarma.com/entities/propnex-ltd" target="_blank" data-smartkarma-citation="entities:27209:1" rel="noopener">Propnex Ltd (PROP SP)</a> is Singapore’s largest listed real estate agency. Propnex’s shares have been on tear are up around 150% YTD helped by strong sales momentum in both new home and resales transactions. Singapore’s property market has been sizzling, with the Private Property Price Index (PPI) increasing each quarter from 2Q20 to 1Q21. The rate of increase in the PPI slowed in 2Q21 due to lockdowns which impacted property viewings and the launch of new projects for sale. <div class="content-highlight">
Despite the re-introduction of partial lockdowns, Propnex is forecasted to deliver a strong 2021 due to the robust transaction volumes posted by all its segments in 1H21. However, the consensus is forecasting that 2021 will mark the peak earnings as the positive tailwinds of 2021 will be difficult to sustain into 2022 and beyond.
Propnex currently trades at FY21 P/E of 12.3x and a cash-adjusted FY21 P/E of 10.3x. The FY21 P/E of 12.3x is broadly in line with the average 1-year forward P/E of 12.2x but a 15% premium to the average forward P/E of 10.7x since IPO. At the last close price, we think that most of the positive expectations have been priced in and the shares are fully priced.  
</div>

Propnex Ltd (PROP SP) is Singapore’s largest listed real estate agency. Propnex’s shares have been on tear are up around 150% YTD helped by strong sales momentum in both new home and resales transactions. Singapore’s property market has been sizzling, with the Private Property Price Index (PPI) increasing each quarter from 2Q20 to 1Q21. The rate of increase in the PPI slowed in 2Q21 due to lockdowns which impacted property viewings and the launch of new projects for sale. 
Despite the re-introduction of partial lockdowns, Propnex is forecasted to deliver a strong 2021 due to the robust transaction volumes posted by all its segments in 1H21. However, the consensus is forecasting that 2021 will mark the peak earnings as the positive tailwinds of 2021 will be difficult to sustain into 2022 and beyond.
Propnex currently trades at FY21 P/E of 12.3x and a cash-adjusted FY21 P/E of 10.3x. The FY21 P/E of 12.3x is broadly in line with the average 1-year forward P/E of 12.2x but a 15% premium to the average forward P/E of 10.7x since IPO. At the last close price, we think that most of the positive expectations have been priced in and the shares are fully priced.  


<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/capitaland-ltd" target="_blank" data-smartkarma-citation="entities:55" rel="noopener">Capitaland (CAPL SP)</a> 1H21 PATMI +846% YoY; Solid divestments and investments YTD, fund management and residential the bright spot</h3><ul><li>1H21 revenue increased by 34.7% YoY to S$2,730m, mainly driven by development projects as more units were handed over in China and higher progressive revenue recognition from One Pearl Bank in Singapore, partially offset by lower handover of units in Vietnam. The increase was also attributed to lower rental rebates granted to tenants in Singapore and China, higher transactional fee from the listed REITs and unlisted funds, as well as contribution from the newly acquired business park properties in China and an office building in Singapore, 79 Robinson Road, which commenced operation 2H20</li><li>1H21 PATMI increased by 845.5% YoY and came in at S$922.2m, while operating PATMI increased by 66% YoY to S$433.6m. CAPL booked portfolio/FV gains of S$489m and no FV losses/impairments in 1H21. As at 30Jun21, net D/E ratio was at 0.64x and total cash and available undrawn facilities amounted to ~S$14.8bn. CAPL made total S$3.6bn investments (&gt;S$3bn in new economy) and S$11.2bn gross divestments (effective value of S$3.3bn) YTD (vs annual recycling target of S$3bn)</li><li>Residential – In SG, CAPL sold 197 units with sales value of S$330m (close to 6x of 1H20). ~92% of launched units have been sold. CanningHill Piers is targeted to be launched in 2H21. In China, CAPL sold 2,625 units in 1H21 (+48.4% YoY), which translated to sales value of RMB8,007m (+43% YoY). In terms of handovers from 3Q21 onwards, CAPL is expected to recognise ~RMB14.1bn from a total of ~6,700 units sold. In Vietnam, CAPL Achieved 80% of 1H21 handover plan of 177 units. Handover pipeline comprising 554 units with a value of S$193m expected to be handed over from 3Q21 onwards. ~87% of launched units have been sold as of 1H21. Two projects are targeted to be launched in 2H21</li><li>Retail and Commercial – CN registered increase in shoppers’ traffic and tenant’s sales YoY in 2Q21, but SG’s recovery is interrupted by new restrictions  in 2Q21. SG’s shoppers’ traffic and tenant’s sales recorded low improvement in 2Q21. Retail occupancy in CN, SG, MY stood at 91.9%, 97.1% and 86% in 2Q21 (vs 90.7%, 97.2% and 87.6% in 1Q21 and 89%, 97.8% and 88.2% in 4Q20), respectively. Office occupancy in SG, Japan, South Korea and Germany stood at 90.4%, 93.9%, 96.8% and 95.5%, respectively</li><li>Lodging – &gt;3,000 units turned operational YTD 2021, bringing total operational units to 71,901 for 7M21 and &gt;8,300 new units secured via management contracts YTD 2021. There was an increase in overall 2Q21 RevPAU by 53% YoY and 19% QoQ from S$43 to S$66, led by Europe (+44% QoQ), China (+22%), Gulf Region (+19%), Singapore (+9%), SEA (+6%) and North Asia (+4%). CAPL is on track to meet 2023 target of 160K units under management with currently c.129K units under management</li><li>1H21 fund management fee income came in at S$188.7m, a 29% YoY increase and 18% HoH. 1H21 fund AUM rose 6.9% YoY to S$83bn, on track to meet 2024 AUM target of S$100bn. CAPL set up 3 new private funds totalling US$800m in Korea, India, Hong Kong and China</li><li>CAPL is currently trading at 19.7x FY21E P/E and 0.92x P/B.</li></ul>

SingaporeCapitaland (CAPL SP) 1H21 PATMI +846% YoY; Solid divestments and investments YTD, fund management and residential the bright spot1H21 revenue increased by 34.7% YoY to S$2,730m, mainly driven by development projects as more units were handed over in China and higher progressive revenue recognition from One Pearl Bank in Singapore, partially offset by lower handover of units in Vietnam. The increase was also attributed to lower rental rebates granted to tenants in Singapore and China, higher transactional fee from the listed REITs and unlisted funds, as well as contribution from the newly acquired business park properties in China and an office building in Singapore, 79 Robinson Road, which commenced operation 2H201H21 PATMI increased by 845.5% YoY and came in at S$922.2m, while operating PATMI increased by 66% YoY to S$433.6m. CAPL booked portfolio/FV gains of S$489m and no FV losses/impairments in 1H21. As at 30Jun21, net D/E ratio was at 0.64x and total cash and available undrawn facilities amounted to ~S$14.8bn. CAPL made total S$3.6bn investments (&gt;S$3bn in new economy) and S$11.2bn gross divestments (effective value of S$3.3bn) YTD (vs annual recycling target of S$3bn)Residential – In SG, CAPL sold 197 units with sales value of S$330m (close to 6x of 1H20). ~92% of launched units have been sold. CanningHill Piers is targeted to be launched in 2H21. In China, CAPL sold 2,625 units in 1H21 (+48.4% YoY), which translated to sales value of RMB8,007m (+43% YoY). In terms of handovers from 3Q21 onwards, CAPL is expected to recognise ~RMB14.1bn from a total of ~6,700 units sold. In Vietnam, CAPL Achieved 80% of 1H21 handover plan of 177 units. Handover pipeline comprising 554 units with a value of S$193m expected to be handed over from 3Q21 onwards. ~87% of launched units have been sold as of 1H21. Two projects are targeted to be launched in 2H21Retail and Commercial – CN registered increase in shoppers’ traffic and tenant’s sales YoY in 2Q21, but SG’s recovery is interrupted by new restrictions  in 2Q21. SG’s shoppers’ traffic and tenant’s sales recorded low improvement in 2Q21. Retail occupancy in CN, SG, MY stood at 91.9%, 97.1% and 86% in 2Q21 (vs 90.7%, 97.2% and 87.6% in 1Q21 and 89%, 97.8% and 88.2% in 4Q20), respectively. Office occupancy in SG, Japan, South Korea and Germany stood at 90.4%, 93.9%, 96.8% and 95.5%, respectivelyLodging – &gt;3,000 units turned operational YTD 2021, bringing total operational units to 71,901 for 7M21 and &gt;8,300 new units secured via management contracts YTD 2021. There was an increase in overall 2Q21 RevPAU by 53% YoY and 19% QoQ from S$43 to S$66, led by Europe (+44% QoQ), China (+22%), Gulf Region (+19%), Singapore (+9%), SEA (+6%) and North Asia (+4%). CAPL is on track to meet 2023 target of 160K units under management with currently c.129K units under management1H21 fund management fee income came in at S$188.7m, a 29% YoY increase and 18% HoH. 1H21 fund AUM rose 6.9% YoY to S$83bn, on track to meet 2024 AUM target of S$100bn. CAPL set up 3 new private funds totalling US$800m in Korea, India, Hong Kong and ChinaCAPL is currently trading at 19.7x FY21E P/E and 0.92x P/B.

ASEAN Builder's Scoop (13Aug21) - CAPL Residential and FM Bright Spots

Singapore

APAC Realty is a leading real estate services provider, holding the exclusive ERA regional master franchise rights for 17 countries in Asia Pacific. Through its ERA franchisee network, the Group has one of the largest brand footprints in Asia with more than 17,300 salespersons across 651 offices as at 31 December 2019, and is one of the largest ERA Member Brokers globally by transaction value.

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APAC Realty Ltd (APAC SP)

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