PropNex - UOB Kay Hian 2024-03-05: Weaker-Than-Expected 2023 Results With Dividend The Highlight

• 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.
• - Read this at SGinvestors.io -

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.

Adrian LOH UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-03-05 SGinvestors.io

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