SAC Capital has kept its “hold” recommendation on PropNex despite its solid year in FY2021 amid a robust property market.
Analyst Peggy Mak has also lowered her target price estimate to $1.78 from $1.94 in her March 8 report. The lower target price comes as Mak sees that the group will experience a correction in sales volume for the FY2022 due to the low inventory of new units at a record low of 14,154 units.
There will also be a lower number of new launches during the year at around 7,000 units, compared to the average of 10,000 units annually. The cooling measures introduced in December 2021 are also likely to affect sales for the listed property developer, says the analyst.