Frasers Centrepoint (J69U) AI Stock Analysis

• Market Cap: $4.61B
• Dividend Yield: 6.03%
• Average Volume (3M): 7.77M
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.29
• Revenue Growth: 1.49%
• EPS Growth: 5.99%
• Country: SG
• Employees: 27
• Sector: Real Estate
• Sector Strength: 81
• Industry: REIT - Retail
• EPS (TTM): 0.11
• Shares Outstanding: 2,022,389,400
• 10 Day Avg. Volume: 4,573,340
• 30 Day Avg. Volume: 7,765,352
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2.58
• Price Target Upside: 13.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

Frasers Centrepoint's overall stock score is bolstered by solid financial performance and a healthy balance sheet, despite challenges in revenue growth and cash flow. The stock's technical outlook is neutral, with a slight upward trend, while valuation metrics suggest moderate valuation with income appeal. The absence of earnings call data and corporate events does not significantly impact the score.

Positive Factors

Acquisitions

The proposed acquisition of Northpoint City South Wing is expected to bolster income streams, enhancing financial performance.

Lease Negotiations

Portfolio occupancy remained high at 99.5%, enhancing FCT’s bargaining power in lease negotiations.

Tenant Sales Performance

Frasers Centrepoint Trust's portfolio continues to outperform its peers, with tenant sales 15-20% above pre-COVID levels.

Negative Factors

Consumer Spending

Downside risks include a potential slowdown in consumer spending, which could affect tenant sentiment and leasing, impacting the ability to achieve positive rental reversions.

Funding Costs

Higher than expected increase in funding cost, which could impact financial performance.

Frasers Centrepoint Business Overview & Revenue Model

Company Description

Frasers Centrepoint Trust ("FCT") is a leading developer-sponsored retail real estate investment trust ("REIT") and one of the largest suburban retail mall owners in Singapore with total assets of approximately S$6.7 billion. FCT's current property portfolio comprises 11 retail malls9 and an office building located in the suburban regions of Singapore, near homes and within minutes to transportation amenities. The retail portfolio has over 2.3 million square feet of net lettable area with over 1,500 leases with a strong focus on providing for necessity spending, food & beverage and essential services. The portfolio comprises Causeway Point, Northpoint City North Wing (including Yishun 10 Retail Podium), Anchorpoint, YewTee Point, Changi City Point, Waterway Point (40%-interest), Tiong Bahru Plaza, White Sands, Hougang Mall, Century Square and Tampines 1) and an office property (Central Plaza). FCT's malls enjoy stable and recurring shopper footfall supported by commuter traffic and residential population in the catchment. FCT also holds a 31.15% stake in Hektar Real Estate Investment Trust, a retail-focused REIT in Malaysia listed on the Main Market of Bursa Malaysia Securities Berhad. FCT is index constituent of several benchmark indices including the FTSE EPRA/NAREIT Global Real Estate Index Series (Global Developed Index), FTSE ST Real Estate investment Trust Index, MSCI Singapore Small Cap Index and the SGX iEdge S-REIT Leaders Index. Listed on the Main Board of the Singapore Exchange Securities Trading Limited since 5 July 2006, FCT is managed by Frasers Centrepoint Asset Management Ltd., a real estate management company and a wholly-owned subsidiary of Frasers Property Limited.

How the Company Makes Money

Frasers Centrepoint Limited generates revenue through multiple streams. Primarily, it earns from the sale and leasing of residential properties, which includes developing and selling homes and apartments. The company also generates income from its portfolio of commercial properties, including rental income from office buildings and retail spaces. In the hospitality sector, Frasers Centrepoint operates hotels and serviced residences, contributing to its earnings through room bookings and related services. Additionally, the company benefits from strategic partnerships and joint ventures that enhance its development capabilities and expand its market reach. The diversity in its property portfolio and geographical presence allows Frasers Centrepoint to capture various market opportunities and mitigate risks associated with any single segment.

Frasers Centrepoint Financial Statement Overview

Summary

Frasers Centrepoint demonstrates solid financial performance with strong profitability and a healthy balance sheet. While the revenue dip and decreased free cash flow growth pose challenges, operational efficiencies and a stable equity base provide resilience. The company's financial health is sound, but strategic adjustments may be required to address revenue and cash flow growth.

Income Statement

Frasers Centrepoint has shown strong profitability with a gross profit margin of 61.24% and a net profit margin of 56.10% for the latest fiscal year. Revenue has slightly decreased by 4.77% compared to the previous year, indicating a need to address market challenges. The EBIT margin of 60.63% and EBITDA margin of 78.77% further highlight robust operational efficiency. However, the revenue decline suggests potential market pressure or operational adjustments are needed.

Balance Sheet

The company's balance sheet is healthy with a reasonable debt-to-equity ratio of 0.49, suggesting moderate leverage. The return on equity is strong at 4.75%, though showing a slight decline from previous years. The equity ratio stands at 65.25%, indicating solid capitalization and lower risk of insolvency. Despite these strengths, the increase in net debt over the years warrants attention.

Cash Flow

Frasers Centrepoint has a positive free cash flow of $179.90 million, albeit showing a decrease of 23.37% compared to last year, which could affect future investment capabilities. The operating cash flow to net income ratio of 0.91 indicates efficient cash conversion, while the free cash flow to net income ratio is slightly lower at 0.91, highlighting the need for improved cash flow management.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
352.11M	369.72M	356.93M	341.15M	164.38M
	Gross Profit
215.67M	229.10M	225.04M	246.57M	110.89M
	EBIT
213.50M	294.27M	246.19M	220.68M	182.89M
	EBITDA
262.21M	294.31M	246.24M	220.74M	182.95M
	Net Income Common Stockholders
197.55M	211.95M	207.28M	168.63M	151.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
26.81M	32.21M	38.16M	42.23M	28.58M
	Total Assets
6.38B	6.38B	5.94B	5.90B	3.88B
	Total Debt
2.03B	2.20B	1.81B	1.81B	1.25B
	Net Debt
2.00B	2.16B	1.77B	1.77B	1.22B
	Total Liabilities
2.22B	2.40B	1.98B	1.98B	1.35B
	Stockholders Equity
4.16B	3.97B	3.96B	3.92B	2.54B
Cash Flow		Free Cash Flow
174.02M	234.80M	227.68M	192.62M	67.02M
	Operating Cash Flow
215.67M	243.13M	233.58M	198.44M	78.13M
	Investing Cash Flow
45.19M	-356.93M	16.03M	-470.55M	-163.80M
	Financing Cash Flow
-266.25M	107.84M	-253.68M	285.75M	101.15M

Frasers Centrepoint Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:J69U, the sentiment is Positive. The current price of 2.27 is above the 20-day moving average (MA) of 2.22, above the 50-day MA of 2.14, and above the 200-day MA of 2.12, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 62.87 is Neutral, neither overbought nor oversold. The STOCH value of 72.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:J69U.

Frasers Centrepoint Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
J69U	71 Outperform	$4.61B	20.04	5.08%	6.03%	1.49%	5.99%
Sector *	60 Neutral	$2.80B	11.09	0.20%	8508.36%	6.13%	-16.84%

Frasers Centrepoint Corporate Events

Frasers Centrepoint Trust Issues Units for Management Fee

Frasers Centrepoint Asset Management Ltd. announced the receipt of 686,457 units in Frasers Centrepoint Trust as part of the management fee for the first quarter of 2025. This payment in units reflects the company’s strategy to align management interests with those of the trust’s stakeholders, potentially impacting its market positioning by increasing its unit holdings to 104,530,210 out of a total of 2,022,389,350 units issued.

Frasers Centrepoint Trust Allocates S$421.3 Million from Equity Fund Raising

Frasers Centrepoint Trust announced the utilization of approximately S$421.3 million raised through an equity fund raising initiative. The funds are earmarked for repaying existing debts and covering professional fees, with a portion allocated for future acquisitions, reflecting the company’s strategic financial management and growth ambitions.

Frasers Centrepoint Trust Completes Preferential Offering to Bolster Growth

Frasers Centrepoint Trust announced the results of its preferential offering, part of its equity fund raising initiative to raise gross proceeds of at least S$400 million. The offering involved the issuance of 98,185,673 new units to eligible unitholders on a pro-rata basis. This move is expected to strengthen the trust’s financial position and support its growth strategy, potentially impacting its market positioning and providing opportunities for stakeholders.

Frasers Centrepoint Trust Launches Preferential Offering to Raise S$400 Million

Frasers Centrepoint Trust has announced the launch of a preferential offering as part of its equity fund raising initiative, aiming to raise gross proceeds of no less than approximately S$400 million. The offering includes a discount on the issue price of the new units, which is set at S$2.050 per unit, representing a discount to the volume-weighted average price. This move is part of a broader strategy to acquire a 100% interest in North Gem Trust and its trustee-manager, which could potentially enhance the trust’s asset portfolio and financial performance.

Frasers Centrepoint Trust Prices S$80 Million Green Notes for Sustainable Projects

Frasers Centrepoint Trust has announced the pricing of S$80 million in green notes due 2032, under its S$3 billion multicurrency debt issuance programme. The proceeds will be used to finance or refinance eligible sustainable projects, enhancing the trust’s commitment to sustainability and potentially strengthening its market position in sustainable finance.

Frasers Centrepoint Trust Convenes Annual General Meeting

Frasers Centrepoint Trust held its Annual General Meeting on January 14, 2025, at the Intercontinental Singapore. The meeting was attended by unitholders, directors, executive officers, and representatives from HSBC and KPMG. This gathering was significant for discussing the management and future directions of Frasers Centrepoint Trust, reflecting the company’s ongoing commitment to transparency and stakeholder engagement.