PropNex Q4 profit up 24.5% to S$17.8 million; proposes 1-for-1 share issuance

PROPNEX on Tuesday (Feb 28) posted a net profit of S$17.8 million for the fourth quarter ended Dec 31, 2022, a 24.5 per cent year-on-year gain from S$14.3 million.

Revenue for the quarter grew 23.3 per cent to S$298.4 million, from S$242 million. This was due to an increase in commission income from agency services and from project marketing services as Covid-19 eased, and the economy improved, the company said.

Earnings per share for Q4 was 4.8 Singapore cents, higher than the 3.86 cents posted in Q4 2021.

PropNex proposed a final dividend of S$0.08 per share, to be paid out on May 12 after books closure on May 2.

Separately, the group also proposed a one-for-one “bonus” share issuance, where one new share is credited for every one existing PropNex share held. Up to 370 million new shares would be issued under the proposal.

In doing so, the company seeks to broaden accessibility to more investors and encourage trading liquidity.

A circular with more information will be sent to shareholders in due time, said PropNex.

Meanwhile, the property group posted a 3.9 per cent improvement in net profit for FY2022 at S$62.4 million, from S$60 million for FY2021.

Revenue rose 7.5 per cent to S$1 billion, from S$957.5 million.

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PropNex said its FY2022 results were supported by a strong growth in full-year commission income, largely due to the robust residential resale and rental market in 2022.

“Looking forward, we believe that buying interest will continue to remain resilient, as seen by the successful launch of Sceneca Residences early this year and with a healthy pipeline of new launches expected in 2023,” said Ismail Gafoor, co-founder, executive chairman and chief executive of PropNex.

PropNex shares closed 1.8 per cent or S$0.03 higher to S$1.73 on Monday.