PropNex doubles H1 net profit to S$42.3 million for record half-year performance; interim dividend at S$0.05
The 122.4 per cent rise from S$19 million in the first half of 2024 comes as its revenue jumped 73.3 per cent to S$598.9 million from S$345.6 million in the previous corresponding period, based on the company's financial results released on Tuesday (Aug 12).
The higher revenue for the period was driven by PropNex salespersons completing a 7 per cent year on year increase in sales and leasing transactions, said the company.
More than twice the new units were sold in the first half of 2025 at 4,587 units, up from 1,889 units in the first half of 2024. Resale private homes saw an 11.1 per cent rise to 7,212 units transacted, up from 6,491 units in H1 2024. However, resale HDB flats clocked in 5 per cent lower at 13,692 units, down from 14,420.
PropNex's earnings per share stood at S$0.0571 for the half year, up from S$0.0257 previously.
The board proposed an interim dividend of S$0.05 per share, the highest in the company's history. It reflects a payout ratio of 87.6 per cent of its net attributable profit with an 4.6 per cent dividend yield based on the counter's share price as at June 30, 2025, PropNex said.
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Its gross profit was also nearly doubled, up 97.9 per cent at S$66.2 million from S$33.4 million in the year-ago period.
Optimistic outlook
PropNex said it remains 'optimistic' about private home sales as there is a gradual recovery in market sentiment. This follows the uncertainty in the market after US President Donald Trump announced his so-called Liberation Day tariffs in April.
'While downside risks persist, the sensitive pricing of homes, moderation in mortgage rates, potential wealth effect from the stock market rebound, and the still tight labour market may boost private housing demand,' said PropNex in a statement.
The property group added that improved participation from developers in recent government land sales tenders also reflected their continued confidence in the market.
The group forecast a 3 to 4 per cent rise in private home prices in 2025 on the back of 'resilient' demand, healthy household balance sheets, easing interest rates, and 'attractive' new launches.
Developer sales are estimated to range from 8,000 to 9,000 units, excluding executive condominiums, while private resale volume is expected to be between 14,000 and 15,000 units.
PropNex said that resale volume for HDB flats is forecast to be between 27,000 and 28,000 flats, with 4 to 5 per cent gains in the second half of the year due to the stricter loan-to-value limit of 75 per cent for HDB loans, affordability concerns and price resistance from buyers, and new supply from build-to-order and sale of balance flats.
'Buoyed by a record first half and a large, highly-driven salesforce, we maintain our optimism about delivering a strong performance for the full-year of 2025, barring unforeseen events,' said PropNex CEO Kelvin Fong. 'Our playbook continues to focus on investments in technology and training initiatives to boost productivity and support long-term growth.'
Shares of PropNex closed Monday 8.78 per cent or S$0.13 up at S$1.61.
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