PropNex Ltd. (OYY) AI Stock Analysis

• Market Cap: S$1.69B
• Dividend Yield: 4.59%
• Average Volume (3M): 1.97M
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.64
• Revenue Growth: 26.47%
• EPS Growth: 43.31%
• Country: SG
• Employees: 165
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.06
• Shares Outstanding: 740,000,000
• 10 Day Avg. Volume: 1,120,280
• 30 Day Avg. Volume: 1,972,176
• PEG Ratio: -1.19
• Price to Book (P/B): 5.67
• Price to Sales (P/S): 0.89
• P/FCF Ratio: 18.53
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$1.82
• Price Target Upside: -20.52% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: S$2.50 ▲(9.17% Upside)

PropNex Ltd. achieves a strong overall stock score driven by its robust financial performance and positive technical indicators. While the valuation is on the higher side, the company's financial health and market momentum support its growth prospects.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust business expansion and effective market penetration, supporting long-term financial stability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling strategic investments and sustaining operations without excessive debt.

Low Leverage

Minimal leverage reduces financial risk and interest obligations, allowing more resources to be allocated towards growth initiatives.

Negative Factors

Profit Margin Pressure

Relatively modest profit margins may limit profitability growth, requiring efficient cost management to maintain competitive edge.

Dividend Yield

While the dividend yield is attractive, it may constrain cash available for reinvestment in growth opportunities, impacting long-term expansion.

Valuation Concerns

High valuation may limit upside potential and increase investor expectations, pressuring the company to deliver consistent performance.

PropNex Ltd. Business Overview & Revenue Model

Company Description

PropNex Limited provides real estate services in Singapore and internationally. It operates through, Agency Services, Project Marketing Services, Administrative Support Services, and Training Services segments. The Agency Services segment engages in the sale and lease of public and private residential and commercial/industrial properties, including housing and development board flats and executive condominiums, private condominiums, landed properties, retail shops, offices, and factories. The Project Marketing Services is involved in the sale of new private residential development projects for third-party property developers. The Administrative Support Services provides space and other ancillary services. The Training Services segment offers real estate related courses and training programs to salespersons. The company was incorporated in 1996 and is headquartered in Singapore. PropNex Limited is a subsidiary of Uob Kay Hian Pte Ltd.

How the Company Makes Money

PropNex Ltd. makes money primarily through its real estate brokerage services, which account for a significant portion of its revenue. This includes commissions earned from facilitating property transactions such as buying, selling, and leasing of properties. The company also generates revenue from project marketing services by collaborating with property developers to market and sell new real estate developments. Additionally, PropNex Ltd. earns fees through its property management services, which include managing residential and commercial properties on behalf of owners. Real estate consultancy services further contribute to the company's revenue by providing strategic advice and market insights to clients. Partnerships with property developers and financial institutions enhance its service offerings and create additional revenue streams.

PropNex Ltd. Financial Statement Overview

Summary

PropNex Ltd. exhibits strong financial performance with robust revenue growth, healthy profit margins, low leverage, and impressive cash flow generation. The company is well-positioned for continued growth and financial stability.

Income Statement

PropNex Ltd. has demonstrated strong revenue growth with a 13.93% increase in the TTM period, indicating robust business expansion. The gross profit margin of 10.01% and net profit margin of 6.19% are healthy, reflecting efficient cost management and profitability. The EBIT and EBITDA margins are stable at 6.30% and 6.36%, respectively, showcasing operational efficiency. Despite a slight dip in revenue in previous years, the recent growth trajectory is promising.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.014, indicating minimal leverage and financial risk. A strong return on equity of 51.68% in the TTM period signifies effective use of shareholder funds to generate profits. The equity ratio of 32.21% suggests a solid equity base relative to total assets, enhancing financial stability. Overall, the balance sheet reflects a strong financial position with low leverage and high profitability.

Cash Flow

PropNex Ltd. has shown impressive free cash flow growth of 27.64% in the TTM period, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 0.26 and free cash flow to net income ratio of 0.99 indicate efficient cash conversion from earnings. The company has consistently maintained positive cash flow metrics, supporting its operational and financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.04B	782.95M	838.10M	1.03B	957.49M	515.63M
Gross Profit	103.71M	70.98M	59.77M	104.68M	101.79M	55.58M
EBITDA	65.95M	52.78M	63.01M	82.73M	82.30M	40.51M
Net Income	64.18M	40.92M	47.81M	62.36M	60.03M	29.09M
Balance Sheet
Total Assets	387.95M	285.70M	343.06M	375.35M	294.57M	192.71M
Cash, Cash Equivalents and Short-Term Investments	156.43M	142.84M	138.35M	144.13M	145.65M	105.80M
Total Debt	1.78M	2.83M	2.97M	5.01M	2.91M	3.19M
Total Liabilities	259.81M	160.95M	216.84M	248.86M	181.99M	105.12M
Stockholders Equity	124.97M	123.41M	125.15M	125.55M	109.43M	84.56M
Cash Flow
Free Cash Flow	66.58M	37.74M	61.41M	51.04M	82.54M	41.46M
Operating Cash Flow	67.05M	38.04M	62.14M	51.41M	83.08M	41.95M
Investing Cash Flow	14.22M	-14.26M	-15.52M	-4.37M	-565.10K	231.36K
Financing Cash Flow	-60.92M	-45.29M	-52.09M	-53.80M	-42.67M	-17.99M

PropNex Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:OYY, the sentiment is Positive. The current price of 2.29 is below the 20-day moving average (MA) of 2.36, above the 50-day MA of 2.00, and above the 200-day MA of 1.26, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 55.46 is Neutral, neither overbought nor oversold. The STOCH value of 26.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:OYY.

PropNex Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OYY	74 Outperform	S$1.69B	26.41	52.77%	4.59%	26.47%	43.31%
DCRU	71 Outperform	$638.96M	3.26	19.67%	8.45%	36.48%	―
LJ3	69 Neutral	S$810.27M	-5.72	-8.81%	1.71%	-1.32%	-211.26%
H30	59 Neutral	S$654.05M	19.85	1.03%	1.27%	1.94%	-69.89%
5UX	50 Neutral	S$455.08M	-75.71	―	―	8.71%	93.81%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

PropNex Ltd. Corporate Events

PropNex Ltd. Announces Leadership Transition to Strengthen Governance

PropNex Ltd. has announced a significant leadership transition with the appointment of Mr. Kelvin Fong as the new CEO, effective from July 15, 2025, succeeding Mr. Mohamed Ismail Gafoor. This change is part of the company’s commitment to sound corporate governance and effective succession planning, aligning with the Code of Corporate Governance by separating the roles of Chairman and CEO. The transition aims to enhance the company’s operational effectiveness and strategic oversight, with Mr. Gafoor continuing as Executive Chairman to guide the company’s strategic direction and maintain strong stakeholder engagement.

PropNex Celebrates 25 Years with Major Community Initiatives and Leadership Change

PropNex Ltd. celebrates its 25th anniversary by announcing over $30 million in community initiatives, including a $6 million donation to Community Chest and the launch of the PropNex Foundation with a $10 million endowment. Additionally, the company introduces a leadership change with Mr. Kelvin Fong as the new CEO, while Mr. Ismail Gafoor remains as Executive Chairman. These efforts underscore PropNex’s commitment to nation-building and community support, reinforcing its corporate social responsibility and impact on local communities.

PropNex Reports Strong Dividend Amid Revenue Decline

PropNex Ltd. held its Annual General Meeting, where it reported a decrease in revenue to $783 million for FY2024, primarily due to a drop in commission income from project marketing services. Despite this, the company maintained a strong, debt-free balance sheet with a cash position of $112 million and proposed a total dividend of 7.75 cents per share, the highest since its IPO. The company continues to focus on delivering long-term value to its shareholders, leveraging its strategic positioning and diversified revenue streams to cushion against market volatility.