Asked on 19 Jan 2020
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)
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
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
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.
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