PropNex to benefit from stronger resale transactions and healthier property market in FY2021: analysts

Analysts from CGS-CIMB Research and PhillipCapital have maintained their respective “add” and “buy” calls for PropNex with increased target prices after the company’s 4QFY2020 results beat expectations.

PropNex reported an 18.8% y-o-y increase in revenue to $155.6 million driven by better-than-expected HDB and private resales. However, earnings decreased by 8.9% y-o-y to $7.5 million due to lower margins of 10% (11.4% in 4QFY2019) attributable to product mix and share of loss from associates of $0.7 million.

However, CGS-CIMB analyst Lock Mun Yee notes that PropNex ended FY2020 on a high note, with full-year revenue and earnings up 22.8% and 45.2% y-o-y respectively, thanks to the stronger resale market.