PropNex (OYY) H1 2024 earnings summary

Executive summary

• H1 2024 revenue declined 5.1% YoY to $345.586m; profit attributable to owners fell 13.8% to $19.001m, reflecting lower project marketing income and fewer completed transactions.

• Resale activity supported performance as HDB and private resale revenue grew, offsetting declines in project marketing and commercial & industrial revenue.

• Transaction-volume share was 63.3% in 1H24; the salesforce numbered 11,999 as at 1 January 2024 and 12,700 as at 7 August 2024.

Financial highlights

• Revenue was $345.586m, down 5.1% YoY; gross profit was $33.441m, down 6.5%, with gross margin of 9.7% versus 9.8%.

• Profit before tax fell 14.6% to $23.460m; profit for the period declined 15.2% to $19.459m.

• Profit attributable to owners was $19.001m, down 13.8%; EPS decreased to 2.57 cents from 2.98 cents.

• Finance income rose 46.0% to $2.858m, while staff costs increased 24.8% to $9.990m and other expenses fell 41.0% to $7.341m.

Outlook and guidance

• 2024 forecasts: private home prices up 4–5%, HDB resale prices up 7–8%, 28,000–29,000 HDB resales and 13,000–14,000 private resales.

• Private new-home sales forecast was revised down to 5,500–6,000 units; limited launches, cautious sentiment and cooling measures weigh on demand, though sizable 2H launches could boost sales.

• An estimated 16 projects with 6,501 units were lined up for 2H24 launches; 90 projects with 11,185 units were expected to be marketed in 2H24.

• Cautious optimism for 2H24, supported by upcoming launches, stabilising prices and potential easing of borrowing costs.