PropNex has reported earnings of $16.5 million for the 2QFY2021 ended June, an increase of 127.4% from the corresponding quarter the year before.
This brings 1HFY2021 earnings to $31.3 million, up 111.2% y-o-y from $14.8 million previously.
Earnings per share (EPS) amounted to 4.46 cents for the 2QFY2021 and 8.47 cents for the 1HFY2021, compared to 1.96 cents and 4.01 cents for the respective periods the year before.
The higher earnings follow strong growth in revenue amidst the improving Covid-19 situation.
For the 2QFY2021, revenue surged 147.2% y-o-y to $260.5 million following a higher number of transactions which PropNex says remained healthy despite the tightened measures under the Phase 2 (Heightened Alert) period.
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1HFY2021 revenue grew 100.1% y-o-y to $481.1 million, which PropNex attributes to the increase in commission income from agency services and project marketing services.
2QFY2021 gross profit increased 125.8% y-o-y to $27.8 million, while for 1HFY2021 it increased 88.2% y-o-y to $51.1 million.
Net profit after tax (NPAT) jumped 134.5% y-o-y to $18.2 million for the 2QFY2021, in tandem with the higher revenue and gross profit. For the 1HFY2021, NPAT increased 115% y-o-y to $34.4 million.
PropNex’s cash and cash equivalents stood at $120.7 million as at June 30.
The board has declared an interim dividend of 5.5 cents, representing an annualised yield of 5.9% on the price of $1.85 per share on August 3. In comparison, PropNex had paid out an interim dividend of 1.5 cents in FY2020.
“We are encouraged by the solid results for the first half of the year as we continue to invest in technology and growth initiatives to better serve our clients. Given the strength of our brand, we are poised to benefit from a growing global economy,” says Ismail Gafoor, co-founder, executive chairman and CEO of PropNex.
“The effects of the tightened measures were mitigated, as the PropNex salesforce was well-equipped to continue consumer outreach efforts during this period through virtual and digital platforms. As a result, we were able to deliver strong growth momentum in this second quarter, enabling us to declare an interim dividend of 5.5 cents, our highest since listing,” Gafoor adds.
Looking ahead, PropNex expects 2021 home sales across all segments to outperform the previous year,
For the private residential market, the group is projecting a total of 11,000 to 12,000 new homes (excluding ECs) and 16,000 resale units to be transacted for 2021, an increase from the 9,982 new homes and 10,729 resale properties transacted in 2020. PropNex is also forecasting that overall private home prices will see an increase of 6% - 7%. Additionally, the dwindling unsold stock of new units will contribute to price stability.
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PropNex has been appointed for another 15 projects to be rolled out in the second half of 2021, with an anticipated line-up of 3,718 units.
On the public housing front, the Group is projecting overall HDB resale volume to exceed 26,000 units in 2021, with prices expected to increase by 10% - 11% for the year.
Shares in PropNex closed 3 cents or 1.51% lower at $1.96 on August 10.
