PropNex’s earnings for 4QFY2022 up by 24.5% y-o-y to $17.8 mil; FY2022 revenue hits record high

PropNex Limited has recorded a record-breaking revenue of $1.03 billion in FY2022, an increase of 7.5% y-o-y. The revenue growth was partially boosted by the 23.3% y-o-y growth in the Tengah EC 4QFY2022’s revenue of $293.4 million. The group’s earnings for FY2022 stood at $62.4 million, a growth of 3.9% y-o-y, with the 4QFY2022’s earnings of $17.8 million, 24.5% higher than the earnings of $14.3 million in the corresponding period the year before.

Gross profit for FY2022 increased by 2.8% y-o-y to $104.7 million due to higher commission income from agency services of approximately $121.4 million which was offset by a decrease in commission income from project marketing services of around $51.8 million.

Other income increased by 131.1% y-o-y to $16.1 million due to the derecognition of trade payables to agents of around $7.8 million, higher advertising and marketing income of $1.9 million and partially offset by a decrease in referral fee income of approximately $0.7 million.

Earnings per share (EPS) for the 4QFY2022 and FY2022 were 4.80 cents and 16.85 cents respectively. Cash and cash equivalents stood at $138.8 million.

To further encourage trading liquidity and for the distribution of shares, PropNex has proposed a bonus issue where one bonus share will be credited as fully paid per every existing PropNex share held. Up to 370 million new ordinary shares will be issued to PropNex’s shareholders.

A final dividend of 8 cents per share has also been proposed, bringing the total dividend for the FY2022 to 13.5 cents per share, or 80% of the group’s FY2022 earnings.

PropNex’s number of salespersons grew by 8% y-o-y to 11,667. Going forward, the group expects overall private home prices to rise by 5% to 6% in 2023 with a healthy pipeline of new launches expected in 2023. GDP housing grants given for first-time buyers should also encourage right-sizing of homes. Demand for non-residential properties in Singapore are also expected to stay firm in view of the strong fundamentals of the country.

“We have wrapped up the year with a record full-year revenue posted in PropNex’s history,” said Ismail Gafoor, co-founder, executive chairman and CEO of PropNex. “Despite limited new project launches and a decline in home price growth in the fourth quarter of 2022, we managed to turn in a healthy set of results following improvements in both the Covid-19 situation and the overall economy.”