Market watchers are largely positive on PropNex, after the listed real estate agency reported 2.1 times higher earnings of $14.4 million for the 3QFY2021 ended Sept 30. Analysts from PhillipCapital and UOB Kay Hian have kept their “accumulate” and “buy” calls, while analysts from CGS-CIMB Research, DBS Group Research and SAC Capital have kept “hold” on the property group.

PhillipCapital’s Paul Chew has kept his target price of $2.08 as PropNex’s earnings and revenue for 3QFY2021 stood within his expectations. His forecast for the FY2021 remains unchanged, as well. In his report, Chew cited its broad-based growth, record net cash of $123 million as at end-September, as well as the higher dividend payout of 75% to 80% of PropNex’s FY2021 earnings, compared to the 70% in FY2020.

Chew has also raised his dividend forecast for the FY2021 by 17% to 13.5 cents per share, implying a final dividend of 8 cents per share. “Our forecasted annual dividend payout of around $50 million is well supported by operating cashflows. 9MFY2021 free cash flow was around $57 million,” he says.

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