PropNex Ltd. (OYY) AI Stock Analysis

• Market Cap: S$1.78B
• Dividend Yield: 4.43%
• Average Volume (3M): 2.99M
• Price to Earnings (P/E): 27.7
• Beta (1Y): 0.62
• Revenue Growth: 26.47%
• EPS Growth: 43.31%
• Country: SG
• Employees: 165
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.06
• Shares Outstanding: 740,000,000
• 10 Day Avg. Volume: 1,980,490
• 30 Day Avg. Volume: 2,988,013
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$1.76
• Price Target Upside: -25.74% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 71 Outperform
• Price Target: S$1.50 ▼(-36.71% Downside)

PropNex Ltd.'s strong financial performance is the primary driver of its stock score, supported by consistent revenue growth and a stable balance sheet. Technical analysis indicates potential overbought conditions, warranting caution. Valuation is fair, with a high dividend yield enhancing attractiveness. The absence of recent earnings call details or corporate events leaves these factors unaccounted for in the evaluation.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and profitability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing resilience against economic fluctuations and enabling strategic investments.

Profitability

Improving net profit margins reflect effective cost management and pricing strategies, contributing to sustained profitability and shareholder value.

Negative Factors

Free Cash Flow Volatility

Volatility in free cash flow can impact the company's ability to fund operations and investments consistently, posing a risk to financial planning and stability.

Operating Expense Fluctuations

Fluctuating operating expenses can lead to unpredictable profitability, affecting the company's ability to maintain stable earnings and manage costs effectively.

Cash Flow Management

Inconsistent cash flow management may hinder the company's ability to invest in growth opportunities and meet financial obligations reliably.

PropNex Ltd. Business Overview & Revenue Model

Company Description

PropNex Limited provides real estate services in Singapore and internationally. It operates through, Agency Services, Project Marketing Services, Administrative Support Services, and Training Services segments. The Agency Services segment engages in the sale and lease of public and private residential and commercial/industrial properties, including housing and development board flats and executive condominiums, private condominiums, landed properties, retail shops, offices, and factories. The Project Marketing Services is involved in the sale of new private residential development projects for third-party property developers. The Administrative Support Services provides space and other ancillary services. The Training Services segment offers real estate related courses and training programs to salespersons. The company was incorporated in 1996 and is headquartered in Singapore. PropNex Limited is a subsidiary of Uob Kay Hian Pte Ltd.

How the Company Makes Money

PropNex Ltd. makes money primarily through its real estate brokerage services, which account for a significant portion of its revenue. This includes commissions earned from facilitating property transactions such as buying, selling, and leasing of properties. The company also generates revenue from project marketing services by collaborating with property developers to market and sell new real estate developments. Additionally, PropNex Ltd. earns fees through its property management services, which include managing residential and commercial properties on behalf of owners. Real estate consultancy services further contribute to the company's revenue by providing strategic advice and market insights to clients. Partnerships with property developers and financial institutions enhance its service offerings and create additional revenue streams.

PropNex Ltd. Financial Statement Overview

Summary

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

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: 2.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 2.37 is above the 20-day moving average (MA) of 2.28, above the 50-day MA of 1.74, and above the 200-day MA of 1.18, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 68.88 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 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	71 Outperform	S$1.78B	27.68	52.77%	4.43%	26.47%	43.31%
Sector *	53 Neutral	$1.28B	3.12	-6.08%	5.46%	-8.22%	-81.31%
OUE1	―	€532.96M	―	-4.81%	―	―	―
H30	66 Neutral	S$678.89M	20.23	1.11%	1.22%	1.94%	-69.89%
8OX1	―	€305.48M	―	-0.76%	―	―	―
CLN	―	S$314.30M	21.77	8.97%	―	―	―
DCRU	72 Outperform	$678.09M	3.46	20.33%	6.99%	36.48%	―

PropNex Ltd. Corporate Events

PropNex Ltd. Announces Leadership Transition to Strengthen Governance

PropNex Ltd. has announced a significant leadership transition with the appointment of Mr. Kelvin Fong as the new CEO, effective from July 15, 2025, succeeding Mr. Mohamed Ismail Gafoor. This change is part of the company’s commitment to sound corporate governance and effective succession planning, aligning with the Code of Corporate Governance by separating the roles of Chairman and CEO. The transition aims to enhance the company’s operational effectiveness and strategic oversight, with Mr. Gafoor continuing as Executive Chairman to guide the company’s strategic direction and maintain strong stakeholder engagement.

PropNex Celebrates 25 Years with Major Community Initiatives and Leadership Change

PropNex Ltd. celebrates its 25th anniversary by announcing over $30 million in community initiatives, including a $6 million donation to Community Chest and the launch of the PropNex Foundation with a $10 million endowment. Additionally, the company introduces a leadership change with Mr. Kelvin Fong as the new CEO, while Mr. Ismail Gafoor remains as Executive Chairman. These efforts underscore PropNex’s commitment to nation-building and community support, reinforcing its corporate social responsibility and impact on local communities.

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.