PropNex (OYY) H2 2024 earnings summary

Executive summary

• FY2024 revenue was $783.0m, down 6.6% YoY; profit for the year fell 16.1% to $41.6m, while profit attributable to owners declined 14.4% to $40.9m.

• Market share of 2024 home transactions rose to 64.2% from 62.5% in 2023.

• Nearly half of 2024 private new-home transactions occurred in 4Q; related revenue is expected to be recognized in 1H2025.

Financial highlights

• Gross profit was $71.0m, down 12.4% YoY; gross margin declined to 9.1% from 9.7%.

• Profit before tax fell 16.3% to $49.8m; net profit margin was 5.3% versus 5.9%, and EPS declined 14.4% to 5.53 cents.

• Finance income increased 25.6% to $5.6m and other income rose 23.4% to $9.7m; reversal of impairment losses was $1.1m versus $6.8m in FY2023.

• Project marketing commission income declined 23.4% YoY, while agency services income rose slightly.

Outlook and guidance

• FY2025 performance is expected to benefit from revenue recognition of 4Q2024 transactions and a positive property-market outlook, subject to market conditions and unforeseen events.

• 2025 forecasts: private residential prices +3% to +4%; HDB resale prices +5% to +7%.

• 2025 transaction forecasts: 8,000–9,000 private new-home sales, 14,000–15,000 private resales and 29,000–30,000 HDB resales.

• An estimated 29 private residential projects with 12,362 units are slated for 2025 launch; developers are expected to launch ~13,000 units including ECs.