Propnex Ltd has reported a significant 73.3% year-on-year increase in revenue for the first half of 2025, reaching S$598.9 million. This growth was largely attributed to a surge in project marketing revenue, which rose by 183.2% to S$258.5 million, thanks to an increase in primary home transactions and new project launches, a CGS International report said. The company’s earnings per share (EPS) for the period stood at 5.71 Singapore cents, exceeding expectations by achieving 67.3% of the full-year forecast.
The company’s performance was bolstered by a higher gross profit margin of 11%, with a substantial portion of revenue coming from its high-yielding project marketing segment. Propnex also reported a 122.4% increase in profit after tax and minority interests (PATMI) to S$42.3 million. The company has proposed an interim dividend per share of 5 Singapore cents, reflecting an 87.6% payout ratio.
Propnex anticipates continued growth in new home sales, projecting sales to reach between 8,000 and 9,000 units in 2025, up 24-39% from the previous year. The company expects private home prices to rise by 3-4% and HDB resale prices to increase by 4-5% in 2025. The sales force has expanded by 7.8% since January 2025, now totalling 13,618 agents.
The company’s strong cash position of S$136.8 million as of the end of 1H25 supports its high dividend payout ratio. Propnex’s target price has been raised to S$1.77, with potential re-rating catalysts including a stronger-than-expected residential market performance and further market share expansion. However, risks such as a weaker macroeconomic outlook and rising mortgage rates could impact demand for housing and earnings.
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