PropNex (OYY) H1 2024 earnings summary

Executive summary

• Net profit of $19.0 million on revenue of $345.6 million for 1H2024, reflecting resilience amid limited new launches and cooling measures.

• Interim cash dividend of 2.25 cents per share proposed, with an 87.6% payout ratio.

• Private resale market drove performance, offsetting declines in new home sales.

Financial highlights

• Revenue declined 5.1% year-over-year to $345.6 million in 1H2024.

• Gross profit fell 6.5% to $33.4 million; net attributable profit down 13.8% to $19.0 million.

• EPS decreased 13.8% to 2.57 cents compared to 2.98 cents in 1H2023.

• Commission income from project marketing dropped 19.6% year-over-year; agency services income rose 1.3%.

Outlook and guidance

• Cautious optimism for 2H2024, supported by upcoming launches, stabilising prices, and potential easing of borrowing costs.

• Forecast for private new home sales in 2024 revised down to 5,500–6,000 units.

• Overall private home prices expected to rise 4–5% in 2024, moderating from 6.8% in 2023.

• HDB resale volume projected at 28,000–29,000 units for 2024.