The Positive
+ Market share gains and rising cash pile. PropNex shared that in 2023, its market share in new launches crept up 0.5% to 47.9%. Meanwhile, the share in resale rose a larger 6.8% points to 65.8%. HDB resale declined by 0.4% to 64.7%. It remains the largest real estate agency in Singapore, with 12,233 agents (or 66%). Cash continues to pile up in 2023 with a free cash flow of S$55mn (2022: S$49mn). The dividend payout ratio continues to rise to a record 93% in FY23.
The Negative
– Weakness in new launch revenue. Revenue in new launches declined by 36% YoY to S$128mn. The fall in sentiment post-cooling measure and the larger number of units available for resale affected demand. Gross margins contracted as new launches generate higher margins with the additional 0.5% commission paid to the agency.
Source: Phillip Capital Research - 4 Mar 2024
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Created by traderhub8 | Jun 12, 2024
Created by traderhub8 | Jun 03, 2024