PropNex - UOB Kay Hian 2024-08-20: A Slower 1H24; Expect Some Catching Up In 2H24

• 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.
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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.
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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.

Adrian LOH UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-08-20 SGinvestors.io

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