Real estate agency PropNex has posted earnings of $14.8 million for the 1QFY2021 ended March, almost double the $7.6 million recorded the year before.
Earnings per share (EPS) jumped 95.6% y-o-y to 4.01 cents, from 2.05 cents previously.
The higher earnings come as revenue for the period surged 63.3% higher y-o-y to $220.6 million, which the group attributes to improved market sentiment, resulting in strong take-up of new project launches and a higher number of transactions. PropNex’s commission income from agency services grew by $47.5 million, while income from project marketing services grew some $38 million.
In tandem with the higher revenue, gross profit grew 53.3% y-o-y to $23.3 million for the 1QFY2021, while profit before tax (PBT) grew 96.2% y-o-y to $19.4 million.
Cash and cash equivalents stood at $118.9 million as at March 31, compared to $105.8 million as at Dec 31, 2020.
SEE:PropNex to benefit from stronger resale transactions and healthier property market in FY2021: analysts
PropNex saw a growth of 12.6% in the number of salespersons from 8,324 as Jan1, 2020 to 9,373 as at May 3. The group intends to reach a goal of 10,000 salespersons by 2022.
Ismail Gafoor, executive chairman and CEO of PropNex, says the group had an “extremely strong quarter” that saw it achieve top and bottom-line growth thanks to a rise in its market share across the three segments of new launches, private resale and HDB resale.
Despite concerns of potential cooling measures following the 5.4% growth in private home prices in the last six months, PropNex expected a resilient property market for 2021. The group notes that the possible onset of new cooling measures will not hugely impact volume of transactions largely because of the dwindling supply of new private homes from 36,839 units in 1Q2019 to 21,602 units in 1Q2021.
PropNex is projecting private home prices to rise by 6% to 7% in 2021, largely underpinned by new property development launches. Barring any new cooling measures, PropNex expects more than 10,000 new private homes to be sold in 2021.
Similarly, PropNex expects a 6% - 7% increase in HDB resale prices in 2021, with volume anticipated to hit 26,000 units.
PropNex also highlighted that it has taken a 70% interest in Ovvy – The People Marketplace, which is anticipated to expand the group’s foray into proptech.
Shares in PropNex closed down 4 cents or 3.54% lower at $1.09 on May 10.
