PropNex Q4 profit surges on commission income

Real estate agency PropNex yesterday posted a net profit of $8.2 million for its fourth quarter ended Dec 31, more than four times the year-ago net profit of $1.8 million.

Earnings per share stood at 2.22 cents for the quarter, up from 0.49 cent in the year-ago period.

Revenue for the fourth quarter climbed 57.9 per cent to $131 million, from $83 million in the previous year. The higher revenue was thanks to a surge in commission income from project marketing services to $55.3 million, from $16.1 million a year ago.

PropNex said this came on the back of an increase in the number of units completed in the fourth quarter last year, after the private residential market recovered during the first three quarters from the impact of cooling measures introduced in July 2018.

The board proposed a final cash dividend of 1.5 cents per ordinary share and a special dividend of 0.75 cent per ordinary share. Once approved, these will be paid on May 21.

For the full year ended Dec 31, net profit was up 3.2 per cent to $20 million, while revenue fell 2.7 per cent to $419.8 million.

While the coronavirus outbreak impacts the market in the short term, underlying demand for private new launches remains healthy, PropNex said.

With a projected 24,163 Housing Board flats reaching the minimum occupation period this year, the group believes HDB resale demand will be robust this year.

THE BUSINESS TIMES

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A version of this article appeared in the print edition of The Straits Times on February 28, 2020, with the headline PropNex Q4 profit surges on commission income. Subscribe