- PropNex’s reported 2023 net profit of S$48m (-23% y-o-y) was lower than expected despite better sequential earnings seen in 2H23. The highlight of the result was a generous S$0.035 final dividend (1H23: S$0.025), which resulted in a 2023 payout ratio of 93% and implies a yield of 6.9% based on yesterday’s closing price.
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Worse-than-expected 2023 results.
- PropNex (SGX:OYY) reported 2023 net profit of S$47.8m, down 23% y-o-y and lower than our expectations.
- While the company had a stronger 2H23 relative to 1H23, the sequential earnings growth of 17% h-o-h in 2H23 was not enough to offset the impact of lower transaction volumes across the public and private new-sale and resale markets due to high interest rates and property cooling measures.
- - Read this at SGinvestors.io -
- In addition, management pointed out that some new launches were delayed into 2024.
Dividend payout the highlight.
- In our view, the highlight of PropNex's result was the proposed final dividend of S$0.035, which resulted in a total dividend of S$0.06 for the full year. This represents a payout ratio of nearly 93% of net attributable profit, implying a dividend yield of 6.5% based on PropNex's share price yesterday.
- The payout ratio is higher than our expected 75%. See PropNex's dividend dates.
Elections year in 2024; unlikely to have any tax respite.
- Read more at SGinvestors.io.
