PropNex (OYY) H2 2022 earnings summary

Executive summary

• FY2022 revenue rose 8% YoY to S$1,029.2m; profit before tax was S$79.1m, up 1% YoY, and profit for the period was S$65.4m.

• Revenue remained diversified across project marketing, private and HDB resale, rental and landed resale; project marketing was the largest segment at S$383.7m.

Financial highlights

• Revenue increased to S$1,029.2m from S$957.5m; cost of sales rose 8% to S$924.5m and gross profit rose 3% to S$104.7m.

• Operating income was S$17.3m versus S$7.3m; expenses increased 88% to S$22.8m, while staff costs rose 9% to S$18.4m.

• Profit before tax was S$79.1m versus S$78.7m; net profit margin was 7.7% versus 8.2%, and tax expense was S$13.7m.

• Gain on disposal of Soreal/PPMC was S$0.5m, compared with S$0.6m in FY2021.

Outlook and guidance

• 2023 private residential prices were forecast to grow 6–8%; HDB resale prices were forecast to rise 5–6%.

• 2023 transaction forecasts: HDB resale 28,000–30,000 units, private resale 14,000–15,000 and private new sales 8,000–9,000.

• More than 17,000 private residential units, excluding ECs, were expected to complete in 2023; estimated launch pipeline was 12,371 homes, 173% above 2022.