- PropNex (SGX:OYY)'s 1H24 results were below expectations. Revenue and PATMI were 39%/33% of our estimates. Earnings dragged down by a 20% y-o-y drop in new home sales revenue to S$91mil. The lack of new launches in 1H24 was the reason for the weakness.
- - Read this at SGinvestors.io -
- We lower our FY24e earnings forecast for PropNex by 11% to S$50.3mil. Our revenue is cut by 6% to account for the disappointing new launch revenue.
The Positive
Growth in resale revenue.
- The combined resale revenue of private and HDB properties grew 7.4% y-o-y to S$161mil. The median transacted price gap between a new and resale home is 23% to 40%, depending on the region. Declining affordability and unit size are other drivers for resale.
- - Read this at SGinvestors.io -
The Negative
New launch revenue contracted for 2 years.
- Read more at SGinvestors.io.
