- PropNex (SGX:OYY)'s 2023 results were below expectations. Revenue and PATMI were 83%/76% of our estimates. 2H23 adjusted PATMI declined 26% y-o-y to S$26.2mil, dragged down by weakness in new launch transactions. The dividend for FY23 dropped 11% to 6 cents or 6.9% yield.
- - Read this at SGinvestors.io -
- We expect a recovery in transactions in FY24e. Driving transactions are recovering sentiment post-cooling measures, a higher number of new launches, a surge in residential completions, resilient HDB prices for upgraders, and lower mortgage interest.
- PropNex remains the largest real estate agency in Singapore, with 62.5% market share in private residential and HDB resale transactions. PropNex pays an attractive yield of 6.9% (or S$44mil) backed by S$148mil net cash.
The Positive
Market share gains and rising cash pile.
- - Read this at SGinvestors.io -
- PropNex remains the largest real estate agency in Singapore, with 12,233 agents (or 66%). Cash continues to pile up in 2023 with a free cash flow of S$55mil (2022: S$49mil).
- The dividend payout ratio continues to rise to a record 93% in FY23.
The Negative
Weakness in new launch revenue.
- Read more at SGinvestors.io.
Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @ https://www.stocksbnb.com/.
Paul Chew Phillip Securities Research | https://www.stocksbnb.com/ 2024-03-04
Read also Phillip's most recent report:
2024-08-16 PropNex - Stronger 2H24 Expected.
Price targets by 2 other brokers at PropNex Target Prices.
Listing of research reports at PropNex Analyst Reports.
Relevant links:
PropNex Share Price History,
PropNex Announcements,
PropNex Dividends & Corporate Actions,
PropNex News Articles
