Frasers Property Limited: A Promising Prospect

Frasers Property Limited (FPL) has reported a stronger operational performance in the second half of FY24. Despite their core EPS of 3.6 Scts in 2H/FY24 falling short of expectations, the company demonstrated resilience with a 33.2% year-on-year increase in revenue to S\$2.67 billion. This positive trend was driven by improved contributions from their industrial and logistics (I&L) and hospitality segments.

The hospitality unit saw a 3% rise in Profit Before Interest and Tax (PBIT), primarily due to increased demand in Australia, Malaysia, Spain, and Germany. Although there were challenges in the UK and Singapore with weaker long-stay demand, China reported a rise in PBIT, thanks to higher sales and settlements of residential units and warehouses.

However, the Singapore and Thailand/Vietnam units experienced a downturn, with Singapore’s PBIT falling 8.9% and Thailand/Vietnam’s by 9.2% due to fewer residential settlements. Despite these setbacks, FPL maintains a robust pipeline with S\$1.1 billion of unbilled residential revenue predominantly in Australia and China.

The company continues to focus on capital recycling and strategic partnerships to bolster its financial standing. The Add recommendation is reiterated with a target price of S\$1.41, suggesting a significant upside potential from the current price of S\$0.92.

APAC Realty Ltd: A Steady Performer

APAC Realty Ltd presents a compelling case with a current share price of S\$0.38 and a target price of S\$0.45. The company has been rated as Add, with the expectation of a positive return exceeding 10% over the next 12 months. This reflects a promising growth trajectory with price-to-earnings (P/E) ratios projected to decrease from 14.3 in FY23 to 9.3 by FY25.

Capitaland Investment: Strong Growth Prospects

Capitaland Investment holds a robust position with a current share price of S\$2.78 and a target price of S\$4.30, reflecting a potential upside. The company’s P/E ratio shows a favorable downward trend from 19.9 in FY23 to an expected 14.1 in FY25. With a 42% discount to RNAV, Capitaland Investment is strategically positioned for growth, backed by a solid dividend yield of 4.3% across FY23 and FY24.

City Developments: Navigating Challenges

City Developments has been rated Add, with a current share price of S\$5.12 and a target price of S\$8.97. Despite facing a 69% discount to RNAV, the company is projected to achieve a P/E ratio of 10.7 by FY25, down from 13.6 in FY23. The consistent dividend yield of 2.3% underscores its commitment to returning value to shareholders.

Propnex Ltd: A Rising Star

Propnex Ltd is showing promising potential with a current share price of S\$0.86 and a target price of S\$0.94. Projected P/E ratios indicate a decrease from 14.5 in FY23 to 12.0 in FY25, highlighting improved profitability. The company’s dividend yield is expected to increase from 6.2% to 7.1%, reflecting its strong market position and growth prospects.

UOL Group: Steady Progress

UOL Group has maintained an Add rating with a current share price of S\$5.33 and a target price of S\$8.20. The company shows a stable P/E ratio trend, expected to be 11.5 by FY25, down from 13.6 in FY23. With a 61% discount to RNAV, UOL Group presents a valuable opportunity for investors, coupled with a consistent dividend yield of 2.8%.