- PropNex (SGX:OYY)'s 1H24 PATMI of S$19m (-13.8% y-o-y; -26.2% h-o-h) came in below our and market expectations at 41%/36% of MIBG/consensus’ full year estimates.
- While both HDB and private resale volumes were relatively resilient, we note that private new home sales hit a two-decade low. Hence, we trim our FY24E-26E EPS forecasts for PropNex by 10-14% on fewer transactions.
1H topline hit by lower new home sales
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
- Consequently, gross profit margin also narrowed to 9.7% in 1H (vs 1H23: 9.8%; 2H23: 9.5%) along with the shift in business mix.
Secondary market remains active
- Looking ahead, PropNex's management remains cautiously optimistic about the local residential property outlook given upcoming new launches (estimated 16 projects with 6,501 units in 2H), stabilising home prices, as well as a potential easing of borrowing costs.
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.maybanktrade.com.sg/.
Eric Ong Maybank Research | https://www.maybank-ke.com.sg/ 2024-08-13
Previous report by Maybank:
2024-02-28 PropNex - Momentum Stalls; Downgrade To HOLD.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
