PropNex Q1 profit nearly doubles to S$14.8m on higher revenue

REAL estate agency PropNex on Tuesday posted a first-quarter net profit of S$14.8 million, nearly double the S$7.6 million the year before.

This came amid higher revenue from an increase in commission income from agency services and project marketing services.

The results translate to earnings per share (EPS) of 4.01 Singapore cents for the three months ended March 31, against an EPS of 2.05 cents the year prior.

Revenue was up 63.3 per cent on the year to S$220.6 million, from S$135.1 million. The group earned S$47.5 million in commission income from agency services and S$38 million from project marketing services.

This was a result of a higher number of transactions completed in the first quarter, following improvements in both the Covid-19 situation and the economy.

PropNex said the growth in both its top and bottom line is also attributable to improved market sentiment. There was a strong take-up of new project launches, it added.

No dividend has been declared for the period, unchanged from a year ago, due to the company's policy of distributing dividends on a semi-annual basis.

PropNex co-founder, executive chairman and chief executive Ismail Gafoor said the main drivers that spurred sales in the primary residential market and supported prices in 2020 have continued to support the market in the first quarter of 2021. These factors include ample liquidity in the market, low interest rates and rising optimism.

"We are expecting buyer interest to carry through for both the new and resale private homes, as economic recovery gains traction and market sentiment recovers," he said.

Shares of PropNex closed at S$1.10 on Wednesday, up S$0.01 or 0.9 per cent.