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APAC Realty Limited, a prominent real estate services provider operating under the ERA brand in Singapore, recently released its financial results for the year ended December 31, 2023. Despite facing challenges in the macro environment and local property market, the company demonstrated resilience, retaining a substantial share of the Singapore market and continuing its expansion efforts in overseas markets.
In FY2023, APAC Realty reported a revenue of S$557.3 million, representing a decline from S$705.0 million in FY2022. The drop in revenue can be attributed to a 47.8% decline in new home sales revenue and a 3.3% decrease in revenue from resale and rental of properties. The company closed FY2023 with a net profit of S$10.6 million, reflecting a 59.9% decrease compared to FY2022.
Despite the challenges, Mr. Marcus Chu, the Chief Executive Officer of APAC Realty, highlighted the company's ability to generate positive cash flows and maintain S$44.1 million in cash and cash equivalents as of December 31, 2023.
In a challenging market environment, ERA, APAC Realty's real estate brokerage arm, managed to retain a sizeable share of the Singapore market. According to market data, ERA recorded 18,911 property sales transactions in FY2023, capturing a 40.7% share of the residential property market. This is consistent with the 40.6% share achieved in FY2022.
The Capital Markets & Investment Sales (CMIS) team played a pivotal role in closing significant deals, contributing to the overall performance. ERA was also appointed as the marketing agency for 21 new home projects, securing an estimated 30% share of the new homes segment.
In 2023, ERA demonstrated its commitment to empowering salespersons with cutting-edge technologies. The SALES+ super-app was enhanced with over 20 new features, including the integration of OpenAI GPT-3.5 for copywriting, content generation, and translation tasks. This integration significantly improved salespersons' productivity and overall user experience.
ERA's focus on innovation extended to features such as in-app asset advisors, property valuation tools, and streamlined processes for posting property listings. These advancements showcased ERA's commitment to staying ahead in technology adoption and providing superior service to clients.
ERA's collaboration with Mediacorp on the television drama, 'My One and Only,' further extended the brand's reach and connected with new audiences. The drama, featuring renowned actors like Zoe Tay, Elvin Ng, and Ya Hui, provided a fresh perspective on the real estate profession and showcased ERA's commitment to engaging with the community.
Looking ahead to FY2024, APAC Realty is set to focus on salespersons, projects, and platforms. The company aims to empower its sales force with advanced tools and knowledge, reinforcing its position as an industry leader. Overseas, the Group continues its regional expansion strategy, particularly in Indonesia and Vietnam, with recent acquisitions and a positive outlook for the Vietnam property market in FY2024.
APAC Realty's FY2023 results showcase a company that, despite market challenges, remains resilient, innovative, and committed to empowering its sales force. The strategic focus on technology, market share retention, and regional expansion positions APAC Realty for continued success in the dynamic real estate landscape. As the industry evolves, APAC Realty's adaptability and commitment to excellence ensure it remains a key player in the Asia-Pacific real estate market.
APAC Realty share price in Singapore stock market sunk to a 3-year low at $0.41 on March 4, 2024. The Singapore real estate market sentiment has deteriorated due to high interest rate environment and ongoing retrenchment in the tech sector.
Mr. JT Chia, the Managing Director of Propertyforsale Pte Ltd, sees a buying opportunity at $0.41 which is a strong support level. The risk reward is favourable for long term investors and APAC Realty has a very high dividend yield.
