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.
Above is an excerpt from a report by Phillip Securities Research. Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.
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