Frasers Property (TQ5) AI Stock Analysis

• Market Cap: $3.75B
• Dividend Yield: 4.76%
• Average Volume (3M): 259.08K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.74
• Revenue Growth: 19.82%
• EPS Growth: N/A
• Country: SG
• Employees: 5,032
• Sector: Real Estate
• Sector Strength: 61
• Industry: Real Estate - Diversified
• EPS (TTM): 0.04
• Shares Outstanding: 3,926,041,500
• 10 Day Avg. Volume: 312,010
• 30 Day Avg. Volume: 259,080
• PEG Ratio: -0.61
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.90
• 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: $1.00
• Price Target Upside: 6.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: S$1.00 ▲(6.38%Upside)

Frasers Property scores well due to its consistent revenue growth and strong cash flow generation, contributing significantly to its overall financial performance. However, the high leverage and relatively low net profit margins are areas for improvement. The technical analysis suggests potential overbought conditions, which could limit short-term upside. The valuation is balanced with a fair P/E ratio and a strong dividend yield, providing a solid investment case for income-focused investors.

Positive Factors

Dividends

There may be upside to dividends with higher profitability in the coming years.

Valuation

The group is trading at a remarkably cheap valuation, with its stake in various REITs exceeding its market cap.

Negative Factors

Global Economy

A global slowdown could have an impact on demand for residential homes from potential slowdown.

Profitability

PBIT declined 16% on lower residential revenue and impairment of UK commercial property.

Frasers Property Business Overview & Revenue Model

Company Description

Frasers Property Limited, an investment holding company, develops, invests in, and manages a portfolio of real estate properties. The company's asset portfolio includes integrated, residential, hospitality, commercial and business parks, retail, and logistics and industrial properties in Singapore, Australia, Europe, China, Thailand, Southeast Asia, and internationally. It owns and/or operates serviced apartments and hotels in approximately 70 cities across Asia, Australia, Europe, the Middle East, and Africa. The company also acts as a sponsor of two real estate investment trusts (REITs) listed on the SGX-ST that comprises Frasers Centrepoint Trust, and Frasers Logistics & Commercial Trust focused on retail, commercial, and industrial properties; and one stapled trust listed on the SGX-ST that include Frasers Hospitality Trust focused on hospitality properties; and two REITs listed on the Stock Exchange of Thailand, which include Frasers Property (Thailand) Public Company Limited, a sponsor of Frasers Property Thailand Industrial Freehold & Leasehold REIT that focuses on industrial and logistics properties in Thailand, as well as Golden Ventures Leasehold Real Estate Investment Trust, which focuses on commercial properties. The company was formerly known as Frasers Centrepoint Limited and changed its name to Frasers Property Limited in February 2018. The company was incorporated in 1963 and is headquartered in Singapore.

How the Company Makes Money

Frasers Property generates revenue through a diversified business model that includes property development, investment, and management services. A significant portion of the company's income comes from the sale of residential and commercial properties, as well as leasing and rental income from its retail and industrial properties. Additionally, Frasers Property earns recurring income through its property and asset management services, where it manages properties for third-party owners and earns management fees. The company also benefits from its real estate investment trusts (REITs), which provide stable income from managed properties. Strategic partnerships and joint ventures enhance its revenue streams by expanding its market presence and leveraging shared expertise in property development and management.

Frasers Property Financial Statement Overview

Summary

Frasers Property demonstrates consistent revenue growth and efficient cash generation. However, profitability margins indicate potential for improvement, and high leverage remains a concern. The company should focus on enhancing net profit margins and managing debt levels to ensure long-term financial stability.

Income Statement

Frasers Property shows consistent revenue growth with a 6.79% increase from the previous year, although gross profit margin slightly declined from 39.13% to 35.44%. The EBIT and EBITDA margins remain strong at 24.88% and 32.28% respectively, indicating operational efficiency. However, the net profit margin is relatively low at 4.90%, suggesting room for improvement in profitability.

Balance Sheet

The company maintains a high debt-to-equity ratio of 1.85, indicating significant leverage which could pose financial risks. Return on equity has improved to 2.08%, but remains modest. The equity ratio stands at 25.06%, indicating moderate reliance on equity financing.

Cash Flow

Frasers Property has achieved a solid free cash flow growth rate of 17.49%, supported by strong operating cash flows that are 6.03 times its net income, highlighting robust cash generation capabilities. The free cash flow to net income ratio is impressive at 5.72, suggesting efficient cash utilization.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	4.21B	3.95B	3.88B	3.76B	3.60B
Gross Profit	1.49B	1.54B	1.51B	1.57B	1.46B
EBITDA	1.36B	1.22B	1.21B	1.29B	1.07B
Net Income	206.33M	173.14M	928.27M	833.09M	188.13M
Balance Sheet
Total Assets	39.64B	39.78B	40.17B	40.26B	38.75B
Cash, Cash Equivalents and Short-Term Investments	2.64B	2.59B	3.24B	3.73B	3.31B
Total Debt	18.37B	17.49B	17.02B	18.59B	20.40B
Total Liabilities	22.17B	21.58B	20.79B	21.93B	23.63B
Stockholders Equity	9.93B	10.79B	11.59B	10.79B	8.90B
Cash Flow
Free Cash Flow	1.18B	1.43B	190.40M	316.29M	-352.65M
Operating Cash Flow	1.24B	1.56B	1.18B	1.36B	611.00K
Investing Cash Flow	-339.01M	-1.47B	49.80M	-146.61M	-1.68B
Financing Cash Flow	-846.82M	-688.99M	-1.57B	-557.32M	1.60B

Frasers Property Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:TQ5, the sentiment is Positive. The current price of 0.94 is above the 20-day moving average (MA) of 0.91, above the 50-day MA of 0.86, and above the 200-day MA of 0.85, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 73.97 is Negative, neither overbought nor oversold. The STOCH value of 87.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:TQ5.

Frasers Property Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TQ5	68 Neutral	$3.75B	14.25	2.80%	4.76%	19.82%	―
Sector *	64 Neutral	$6.87B	17.44	-1.93%	6.95%	4.65%	-24.33%
CDEVF	―	$4.34B	30.09	2.21%	0.48%	―	―
FRZCF	―	$3.51B	20.37	5.08%	3.75%	―	―
MAPIF	―	$4.60B	17.89	6.85%	6.44%	―	―
SURVF	―	$2.69B	31.85	1.86%	5.96%	―	―
UOLGF	―	$4.61B	16.63	3.19%	0.59%	―	―

Frasers Property Corporate Events

Frasers Property Expands Investment in Bangkok Mixed-Use Development

Frasers Property Limited has entered into further shareholders loan agreements related to its joint venture investments in One Bangkok Holdings Co., Ltd., One Bangkok Ventures Co., Ltd., and One Bangkok Co., Ltd. This move is part of their ongoing project to develop a leasehold site in central Bangkok into an integrated mixed-use development. The joint venture involves Frasers Property Holdings (Thailand) Co., Ltd., a subsidiary of Frasers Property, and TCC Assets (Thailand) Co., Ltd. Frasers Property holds a 19.9% shareholding interest in both One Bangkok Holdings and its subsidiary One Bangkok Ventures, while TCC Assets holds the majority stake. This development is expected to enhance Frasers Property’s presence in the Thai real estate market and strengthen its portfolio of mixed-use developments.