PropNex Q3 net profit rises 21.9% to S$17.6 million on higher revenue

MAINBOARD-LISTED real estate agency PropNex on Wednesday (Nov 9) reported a 21.9 per cent increase in net profit for the third quarter on the back of higher revenue.

Net profit for the three months ending Sep 30, 2022, rose to S$17.6 million from S$14.4 million in the year-ago period. Revenue rose 10.2 per cent over the same period to S$258.4 million.

On a per share basis, earnings improved to S$0.0475 in Q3 FY 2022, from S$0.0389 in the prior year period. No dividend was declared, unchanged from the previous year.

For the nine-month period ended September, the group reported revenue of S$730.8 million, up 2.1 per cent year-on-year, while net profit fell 2.5 per cent on year to S$44.6 million.

PropNex chief executive Ismail Gafoor said the market has remained “remarkably resilient” in the past nine months, with both private residential and HDB resale segments continuing to make price gains in Q3 2022.

While there have been fewer project launches at the start of the year, PropNex has had “healthy growth” from the increase in its salesforce, Gafoor said. “We are focused on maintaining our momentum for the remaining of the year.”

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Since the beginning of this year, PropNex salesforce headcount has grown 11.8 per cent to 12,065 as at Nov 2.

Gafoor noted that recent calibrations to cooling measures by the government are “needful and timely” but the effect has yet to be seen in the market.

PropNex expects transaction volumes for private residential resale to remain muted, given the tight resale inventory.

“Owners may be reluctant to sell, and instead opt to tap the strong rental demand; while increase in rents may also help to defray any increase in monthly mortgage payments due to rising interest rates,” the company said.

The group also projects that HDB resale price could rise by 9-10 per cent this year, lower than the 12.7 per cent increase in 2021.

Net asset value per share for the group stood at S$0.2913 as at Sep 30, 2022, slightly lower than S$0.2958 on Dec 31, 2021.

The counter rose 0.7 per cent to close at S$1.38 on Wednesday, before the announcement.