For the full year, net profit was down 23.3 per cent on the year to S$47.8 million, while revenue declined 18.6 per cent to S$838.1 million. This was led by a fewer number of transactions completed for both agency and project marketing services.
Commission income from agency services dropped 7.7 per cent to S$591.1 million, while commission income from project marketing services fell 36.9 per cent to S$242.3 million in FY2023.
Ismail Gafoor, executive chairman and chief executive officer of PropNex, noted that despite the company’s H2 revenue and net profit registering growth compared with H1, it was not enough to compensate for the caution by prospective homebuyers amid recent cooling measures, high interest rates and macroeconomic uncertainties.
He added: “I believe our FY2023 performance was resilient in this context as we retained our strong foothold in the residential market, capturing an overall 62.5 per cent share of the private new launches, private resale and HDB resale segments.”
The company also highlighted its debt-free position with cash and bank balances of S$148.1 million as at the end of December.
Ismail expects a return in buying sentiment in 2024, supported by projected economic growth, the potential easing of interest rates, as well as a pipeline of new launches. To better position itself for the market revival, PropNex plans to expand its sales force to 15,000 by 2026.
Shares of PropNex closed on Tuesday up 2.3 per cent or S$0.02 at S$0.895.
