PropNex (OYY) H1 2023 earnings summary

Executive summary

• 1H23 revenue fell 22.9% YoY to S$364.3m and profit for the period declined 18.8% to S$22.9m amid lower transaction-related income.

• Revenue remained diversified across project marketing, rental, resale and commercial segments; rental was the only segment with reported YoY growth.

Financial highlights

• Revenue was S$364.3m, down 22.9% YoY; gross profit was S$35.8m, down 25.1% YoY.

• Profit before tax declined 19.6% YoY to S$27.5m; profit for the period fell 18.8% to S$22.9m.

• Finance income rose to S$2.0m from S$0.3m; other income was S$4.7m, down 2.5% YoY.

Outlook and guidance

• 2023 price forecasts: private residential homes +4–5%; HDB resale homes +5–6%.

• 2023 transaction forecasts: HDB resale 27,000–28,000 units; private resale 12,000–13,000; private new sales 7,000–7,500.

• Estimated 2023 new-launch pipeline, including ECs, was 11,529 homes, 155% above 4,528 in 2022.