- PropNex’s 14% y-o-y decline in 1H24 PATMI was due to the dearth of new property launches. By our estimates, this will be made up for in 2H24 and 1H25 as a result of the strong pipeline of 16 new launches, amounting to over 6,500 units which is double the number launched in 1H24.
- - Read this at SGinvestors.io -
A weaker-than-expected 1H24.
- PropNex (SGX:OYY)’s reported 1H24 net profit fell short of expectations with PATMI falling 14% y-o-y to S$19m and making up only 40% of our full-year estimates. However, we highlight that 2H23 will see a material sequential increase in new launches with over 6,500 units to be launched vs just 2,408 units in 1H24.
- For 1H24, the lower numbers of new launches resulted in project marketing revenue declining nearly 20% y-o-y while landed resale fell 7.5% y-o-y.
- - Read this at SGinvestors.io -
Interim dividend of S$0.0225
- See PropNex's dividends – A dividend of S$0.0225 was declared for 1H24 (payout ratio of 87.6%) vs S$0.025 (payout ratio of 83.9%) for 1H23.
- We believe there could be upside to our full-year dividend estimate of S$0.05 given that this only represents a 70% payout.
Other resale segments saw growth.
- Read more at SGinvestors.io.
