PropNex’s earnings for 4QFY2022 up by 24.5% y-o-y to $17.8 mil; FY2022 revenue hits record high

PropNex Limited, Singapore’s largest real estate agency, is proud to report record-breaking earnings in the FY2022 financial year. For the 4QFY2022 ended Dec 31, 2022, their earnings stood at $17.8 million, 24.5% higher than the corresponding period the year before.

This brings their overall earnings for the year to $62.4 million, a 3.9% increase from FY21. This can be attributed to higher commission income generated from agency services and project marketing services.

Revenue for FY2022 was a record-breaking $1.03 billion, and 4QFY2022 saw a 23.3% year-on-year (y-o-y) growth of $293.4 million, which was also a quarterly record. This was driven by growth in both new transactions and improved economics due to the Covid-19 situation.

Gross profit for FY2022 increased by 2.8% y-o-y to $104.7 million. Other income grew by 131.1% y-o-y to $16.1 million, resulting from the derecognition of trade payables to agents and an increase in advertising and marketing income, which was partially offset by a decrease in referral fee income.

The group’s earnings per share (EPS) for 4QFY22 and FY22 stood at 4.80 cents and 16.85 cents respectively.

Cash and cash equivalents at the beginning of the period amounted to $138.8 million.

Looking to continue their positive momentum, PropNex has proposed a bonus issue which will credit 1 bonus share to each existing shareholder, totalling up to 370 million new ordinary shares. This move encourages trading liquidity and broadens the PropNex share distribution.

The company has also proposed a final dividend of 8 cents per share, bringing the FY2022 total dividend to 13.5 cents per share, or 80% of the group’s earnings.

As at Jan 1, the group’s number of salespersons increased by 8% y-o-y to 11,667.

Keeping in view the high land cost and rising construction cost faced by developers, the group expects overall private home prices to rise by 5% to 6% in 2023, as compared to the 8.6% increase in 2022. Additionally, they predict 28,000 to 30,000 HDB resale flats to be resold this year with the Budget 2023 announcement on Feb 14.

Ismail Gafoor, PropNex’s co-founder, executive chairman and CEO said, “With higher grants for two to four-room HDB flats, this Champions Way Condo will encourage right-sizing of homes – potentially easing demand for five-room or larger flats. On the flipside, this could also further spur demand for resale flats given tight market supply, thereby keeping prices firm.”

Overall, the prospects for non-residential properties in Singapore remain promising and PropNex are looking ahead to further improvements in the economy for the FY2023.