PropNex Limited has reported earnings of $17.8 million for the 4QFY2022 which ended December 31st, 2022. This is 24.5% higher than the results of $14.3 million reported in the same time frame the year prior.
The company’s earnings of FY2022 up to $62.4 millions, 3.9% higher y-o-y.
The revenue for FY2022 climbed in FY2022 by 7.5% y-o-y to a record $1.03 billion, exceeding that $1-billion mark in the very first time. This was helped by the 23.3% y-o-y growth in the fourth quarter of FY2022’s total revenue of $293.4 million that was a quarterly record.
The greater y-o y revenue for the 4QFY2022 period was resulted from an upsurge in the commission income from agency services and the company’s project marketing services due to increased transactions that were completed for agency services as well as project marketing during the final quarter, due to economic growth and improvements in the Covid-19 scenario.
The increase in FY2022’s revenues was due to increased the commissions earned from agency services of around $121.4 million, which was partially offset by lower commissions earned for project-based marketing, which was approximately $51.8 million. This was due to more transactions being made for agency services, which was partially offset by the fewer project marketing launches during FY2022.
Gross profit for FY2022 rose in FY2022 by 2.8% y-o-y to $104.7 million, which was in line with the growth in revenue.
Other income rose by 131.1% y-o-y to $16.1 million as a result of the denial of trade-related payments to agents of $7.8 million, and an growth in marketing and advertising earnings of around $1.9 million. The increase in other income was partly offset by a reduction in referral fee revenue by about $0.7 million.
Earnings per Share (EPS) in the fourth quarter of FY2022 and FY2022 sat in the range of 4.80 cents as well as 16.85 cents, respectively.
The cash and cash equivalents were as $138.8 million.
“We finished the year with the highest total revenue in the history of PropNex. Despite a lack of new project launches and a decrease in the growth of home prices in our fourth quarter in 2022 we were able to deliver a solid performance, owing to improvements in the Covid-19 scenario as well as the overall economic situation. We believe that interest in buying homes is expected to continue to be resilient as evident by the success of the Sceneca Residences project in the beginning of this year and an impressive pipeline of new launches scheduled for 2023.” is Ismail Gafoor, co-founder, chief executive officer and chairman of PropNex.
One-for-one bonus issue
The company has proposed to launch a bonus issue in which one bonus share will be fully paid for every PropNex share owned.
As high as 370 million normal shares could be given to PropNex’s shareholders in the issue plan.
The first Bonus Share issue in the history of PropNex and was conducted in order to increase trading liquidity and also expanding the share distribution for PropNex’s shares Gafoor says.
An 8-cent dividend per share for the final year is suggested, due in May. The total dividend for FY2022 period to 13.5 cents for each share equivalent to the equivalent of 80% of the FY2022 profits.
At the time of Jan 1 the sales personnel of the group was up by 8% over a year to 11,667. but it’s still not the biggest real estate agent in Singapore.
Looking ahead, the company anticipates that the overall price of private homes to increase in the range of five% up to 6% for 2023. slowing off from 8.6% increase in 2022 because of the rising cost of land and the rising costs for construction that are being faced by developers. The demand for HDB flats that are resold is predicted to remain steady and the group estimates that 28,000-30,000 flats will be sold in the coming year, following an announcement in the Budget 2023 announcement on Feb 14 about the new CPF housing grants to first-time buyers.
“With the higher grant for homes with two to four rooms HDB apartments, it may favor right-sizing homes – possibly reducing the demand for larger or five-room flats. On the other hand it could boost demand for resales flats because of the limited supply in the market and thereby ensuring that prices remain stable,” says Gafoor.
“Also other measures, such as an increase in the marginal Buyer’s Stamp duty for high-value residential and non-residential properties will not affect home sales in a significant way, as it is a matter of homeowners who buy homes with a price between $1.5 million or $3 million. We expect the overall the demand of properties that are not residential properties located in Singapore to remain strong supported by Singapore’s solid economic basic economics,” he adds.