PropNex Ltd. (OYY) AI Stock Analysis

• Market Cap: S$814.00M
• Dividend Yield: 8.18%
• Average Volume (3M): 555.49K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.56
• Revenue Growth: -6.58%
• EPS Growth: -14.40%
• Country: SG
• Employees: 165
• Sector: Real Estate
• Sector Strength: 56
• Industry: Real Estate - Services
• EPS (TTM): 0.06
• Shares Outstanding: 740,000,000
• 10 Day Avg. Volume: 826,470
• 30 Day Avg. Volume: 555,493
• PEG Ratio: 2.30
• Price to Book (P/B): 4.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.09
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$1.17
• Price Target Upside: 6.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: S$1.50 ▲(36.36%Upside)

PropNex Ltd. scores well due to its strong financial performance and attractive dividend yield. Positive technical indicators support a bullish outlook, though caution is warranted due to the high RSI suggesting an overbought condition. The financial stability and high dividend yield are significant strengths, securing the company's resilience in the real estate services industry.

Positive Factors

Analyst Recommendation

Analyst's recommendation is upgraded to BUY, with a new target price raised to SGD1.15, reflecting confidence in the company's future prospects.

Dividends

PropNex proposed a final dividend and a special dividend, bringing the total dividend to the highest since its listing, implying a 6.8% yield.

Market Share

PropNex has an enviable 64% market share of property transactions with an attractive dividend yield of 6.1%.

Negative Factors

Financial Performance

FY24 results were below expectations. Revenue and PATMI were 94%/82% of estimates.

HDB Resale Volumes

HDB resale volumes have been weak, down 6% YTD5/25.

New Home Sales

Weak project marketing or new home sales. New home sales in 9M24 were down 43% YoY to 3,049 units.

PropNex Ltd. Business Overview & Revenue Model

Company Description

PropNex Ltd. is a leading real estate services company headquartered in Singapore. It operates in the real estate brokerage sector, providing a wide range of property-related services. The company offers services such as residential and commercial property brokerage, project marketing, property management, and real estate investment advisory. With a strong market presence, PropNex has established itself as a prominent player in the Singaporean real estate market.

How the Company Makes Money

PropNex Ltd. generates revenue primarily through its real estate brokerage services, where it earns commissions from facilitating property transactions. The company represents buyers, sellers, landlords, and tenants in the sale and lease of residential and commercial properties. Additionally, PropNex earns income from project marketing services, where it partners with developers to market new property developments, earning fees for successful sales. The company also provides property management services, generating recurring revenue from managing properties on behalf of owners. Significant partnerships with property developers and financial institutions further enhance its revenue streams, while its advisory services offer another layer of income through consulting fees.

PropNex Ltd. Financial Statement Overview

Summary

PropNex Ltd. exhibits a strong financial position with consistent revenue growth, robust profitability, and a stable balance sheet characterized by low leverage. Cash flows are generally positive, but there is room for improvement in maintaining free cash flow consistency.

Income Statement

PropNex Ltd. shows a positive trend in revenue growth and profitability over recent years. The gross profit margin has been stable, and the net profit margin has improved from 5.0% in 2019 to 5.2% in 2023. Revenue growth fluctuated but remained positive, with a noticeable dip in 2023. The company maintains a healthy EBITDA margin, though the EBIT margin varied due to fluctuating operating expenses. Overall, the company demonstrates robust revenue generation and profitability.

Balance Sheet

The balance sheet of PropNex Ltd. is strong, characterized by low leverage and increasing equity. The debt-to-equity ratio is low, indicating limited reliance on debt financing. The equity ratio improved from 45% in 2019 to 43% in 2023, reflecting a stable financial position. Additionally, the return on equity (ROE) has shown consistency, reinforcing profitability. Overall, the balance sheet indicates financial stability with a solid equity base.

Cash Flow

The cash flow statement reveals consistent operating cash flows with a notable decline in 2023. The free cash flow growth rate has been volatile but generally positive. The operating cash flow to net income ratio indicates efficient cash generation relative to earnings. However, the free cash flow to net income ratio shows some volatility, suggesting potential fluctuations in cash availability. Overall, cash flow management remains solid, though with room for improvement in maintaining free cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	298.42M	782.95M	838.10M	1.03B	957.49M	515.63M
Gross Profit	30.20M	70.98M	59.77M	104.68M	101.79M	56.53M
EBITDA	23.70M	52.78M	63.01M	82.73M	82.30M	40.51M
Net Income	17.77M	40.92M	47.81M	62.36M	60.03M	29.09M
Balance Sheet
Total Assets	0.00	285.70M	343.06M	375.35M	294.57M	192.71M
Cash, Cash Equivalents and Short-Term Investments	0.00	142.84M	138.35M	144.13M	145.65M	105.80M
Total Debt	0.00	2.83M	2.97M	5.01M	2.91M	3.19M
Total Liabilities	0.00	160.95M	216.84M	248.86M	181.99M	105.12M
Stockholders Equity	0.00	123.41M	125.15M	125.55M	109.43M	84.56M
Cash Flow
Free Cash Flow	11.57M	37.74M	61.41M	51.04M	82.54M	41.46M
Operating Cash Flow	11.72M	38.04M	62.14M	51.41M	83.08M	41.95M
Investing Cash Flow	1.33M	-14.26M	-15.52M	-4.37M	-565.10K	231.36K
Financing Cash Flow	-1.42M	-45.29M	-52.09M	-53.80M	-42.67M	-17.99M

PropNex Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:OYY, the sentiment is Positive. The current price of 1.1 is above the 20-day moving average (MA) of 1.08, above the 50-day MA of 1.06, and above the 200-day MA of 0.96, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 71.28 is Negative, neither overbought nor oversold. The STOCH value of 68.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:OYY.

PropNex Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OYY	74 Outperform	S$814.00M	19.89	32.93%	8.18%	-6.58%	-14.40%
DCRU	73 Outperform	$681.74M	3.38	22.39%	6.98%	6.20%	―
H30	66 Neutral	S$633.35M	20.68	1.03%	1.66%	-5.00%	-73.03%
Sector *	63 Neutral	$6.92B	18.42	-1.93%	6.88%	4.65%	-25.39%
LJ3	58 Neutral	S$741.01M	―	-8.35%	1.87%	3.76%	-480.94%
5UX	51 Neutral	S$373.51M	―	-10.73%	―	-34.68%	-10.10%

PropNex Ltd. Corporate Events

PropNex Reports Strong Dividend Amid Revenue Decline

PropNex Ltd. held its Annual General Meeting, where it reported a decrease in revenue to $783 million for FY2024, primarily due to a drop in commission income from project marketing services. Despite this, the company maintained a strong, debt-free balance sheet with a cash position of $112 million and proposed a total dividend of 7.75 cents per share, the highest since its IPO. The company continues to focus on delivering long-term value to its shareholders, leveraging its strategic positioning and diversified revenue streams to cushion against market volatility.

The most recent analyst rating on (SG:OYY) stock is a Buy with a S$0.96 price target. To see the full list of analyst forecasts on PropNex Ltd. stock, see the SG:OYY Stock Forecast page.