Thoughts on PROPNEX LIMITED (SGX:OYY) whether it's a good buy? - Seedly
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Anonymous

Asked on 19 Jan 2020

Thoughts on PROPNEX LIMITED (SGX:OYY) whether it's a good buy?

Discuss anything about PROPNEX LIMITED (SGX:OYY) share price, dividends, yield, ratios, fundamentals, technical analysis and if you would buy or sell this stock on the SGX Singapore markets. Do take note that the answers given by our members are just your opinions, so please do your own due diligence before making an investment in PROPNEX LIMITED (SGX:OYY)

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Nigel
Level 3. Wonderkid
Updated 2w ago

Propnex has proven resilience and a strong workforce of agents

They have highest market share in a few subcategories and have an asset light business model

One should note that factors like low interest rate environment may or may not lead to pick up in viewings and transactions

Agree that key risks are potential regulatory changes which again, may or may not be a bad thing

The company has high dividend yield which in my opinion is attractive and healthy as shown by their annual FCFs​​​

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Joel Koh
Joel Koh

2w ago

This is so helpful 👍
Billy Ko
Billy Ko
Level 7. Grand Master
Answered on 20 Jan 2020

You must first understand the business model of Propnex. How does Propnex gain revenue and from there deduce if the revenue driver is consistent, sustainable and strong enough to propel Propnex to further heights.

Propnex IPOed at $0.65 but has since dropped till slight over $0.50. At that point of time when Propnex debuted 2 years back, the property market faced setbacks with the cooling measures, so it was a rather gloomy time to IPO, especially for one that transacts in real estate. But since then, the pace should've picked up and the stock market euphoria should've impacted stocks across the board. However, it seems that Propnex does not seem to be positively infected by this. And given how the property market is one that is easily 'manipulated' through regulations and measures, I wouldn't enter into one that deals with this

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pat
pat
Level 7. Grand Master
Answered on 20 Jan 2020

Propnex has the largest fleet of real estate agents in singapore and has a large market shares in private launches, resale and HDB. Their market share should grow over the years.

P/E of 7x and a decent dividend yield of 7% at the current price + high ROE. The pricing now is attractive for investor. Have to see if there are any more cooling measures / absd which might cause the counter to drop more.

2 comments

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Nigel

2w ago

I agree - to add it has no debt
chiggy

2w ago

😱
Choon Yuan Chan
Choon Yuan Chan
Level 9. God of Wisdom
Answered on 20 Jan 2020

I dony really think its time to buy.this is because propnex revenue is dependent on comission earned and sales of properties by its network of agent. With a large proportion of sales in the singapore market. The current slowing in property sales has resulted in propnex experiencing revenue decline and profit drop.

I will advise to wait for a pickup in property transactiona before considering propnex again

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