propnex limited agm 25 april 2019investor.propnex.com/newsroom/20190425_174502_oyy... ·...

PROPNEX LIMITED

AGM

25 April 2019

1

Disclaimer

This presentation does not constitute or form part of any opinion on any advice to sell, or any solicitation of any offer to subscribe for

any shares nor shall it or any part of it nor the fact of its presentation form the basis of, or be relied upon in connection with, any

contract or investment decision or commitment whatsoever.

This presentation does not purport to be complete and is qualified in its entirety by, and should be read in conjunction with, the full text

of PropNex Limited’s Annual Report 2018 (“AR2018”). The information contained in this presentation should not be relied on as any

representation or warranty by Propnex Limited (the “Company” or “PropNex”).

The past performance of the Company is not necessarily indicative of its future performance. Certain statements made in this

presentation may not be based on historical information or facts and may be "forward-looking" statements due to a number of risks,

uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic

conditions, interest rate trends, cost of capital and capital availability, competition from similar businesses and governmental and

public policy changes and terms necessary to support future business. Such forward-looking statements speak only as of the date on

which they are made and PropNex does not undertake any obligation to update or revise any of them, whether as a result of new

information, future events or otherwise. Accordingly, you should not place undue reliance on any forward-looking statements.

This presentation has been prepared by the Company and its contents have been reviewed by Propnex, for compliance with the

relevant rules of the SGX-ST (the “Exchange”). Propnex has not independently verified the contents of this presentation. This

presentation has not been examined or approved by the Exchange. Propnex and the Exchange assume no responsibility for the

contents of this presentation, including the correctness of any of the statements or opinions made or reports contained in this

presentation.

No warranty or representation, expressed or implied, is made with respect to the information set out in this presentation, nor will the

Company be responsible for the consequences of reliance on any opinion or statement set out herein.

OVERVIEW

• Market Leader with First Mover Advantages

• Maiden Set of Full Year Results since Listing

• Over 10% Growth in Salespersons

• Record Net Profit for FY2018

• Anticipated Line-up of over 50 New Project Launches in 2019

FINANCIAL SNAPSHOT

Income Statement

PROPNEX ACHIEVES RECORD

NET PROFIT OF S$21.9m IN FY18

• Revenue surged 30.0% to S$431.5m

• SG Salesforce expanded 10.7% YoY from 6,684 to 7,400*

• As of 25 March 2019, SG salesforce is 7,565.

• Proposed final & special dividends 3.5 cents per share

(payout S$12.95m, 66.7% of PATNCI)

• Proposed dividend payout = 143% of post-IPO profits

• 6.3% yield at 56 cents per share @ 22 Feb 2019

• 10.8% annualised dividend yield based on IPO price of 65

cents

*Source: The Council for Estate Agencies (“CEA”) as at 1 Jan 2019• ,

(in S$'000) FY2018 FY2017

Rev 431,539 331,851 30%

COS (390,177) (298,096) 31%

GP 41,362 33,755

GP% 10% 10%

Other income 4,202 2,938 43%

Staff costs (12,069) (8,283) 46%

Expenses (ex IPO) (6,009) (6,253) (4%)

IPO expenses (1,113) - NM

NPBT 26,373 22,157 19%

NP% 6% 7%

Tax (4,436) (3,271) 36%

NPAT 21,937 18,886 16%

NPAT ex. IPO exp 23,050 18,886 22%

EPS (in cents) 5.72 5.30 7.9%

Sales force FY18: 7400,

FY17: 6684

• Agency FY18: $307.8m,

FY17: $216.6m

• Proj Mktg FY18: $117.3m,

FY17: $109.8m

• Ave. HC FY18: 165, FY17:

147

• Sal. increment & bonuses

• Exec. Dir. salary

FY18 INCOME STATEMENT

REVENUE (S$’ M)

GROUP REVENUE

Mainly due to increase in commission income from

agency services, project marketing services as a

result of growth of SG salesforce from 6,684 as at 1

Jan 2018 to 7,400 as at 1 Jan 2019* Adjusted to reflect SFRS(I) 15

CAGR 29.2%

CAGR 45.3%

CAGR 40.5%

REVENUE BREAKDOWN

Source: PropNex

40%

43%

Market Share By No of Units

The market share information also includes transactions where PropNex salespersons act on behalf of buyers and sellers in co-broking with external agencies.

Source: Frost & Sullivan Pte Ltd, HDB

HDB RESALE

MARKET SHARE

PRIVATE RESALE

Source: Frost & Sullivan Pte Ltd, URA

MARKET SHARE



PRIVATE LEASING


MARKET SHARE



(Private Primary Market)


MARKET SHARE

NEW LAUNCHES


The market share information also includes transactions where PropNex salespersons act on behalf of buyers and sellers in co-broking with external agencies.New launches market share data includes EC, non-landed and landed transactions.

BUSINESS UPDATES

• Anticipated over 50 New Launches in 2019

• URA Overall Private Residential Transactions

FY18: 22,139, FY17: 25,010, 11.5%

• Private Residential Demand from En-Bloc owners, 2019 similar to 2018

• HDB Resale Transactions

FY18: 23,099, FY17: 22,077, 4.6%

• HDB FY19 to witness consistent growth

PROJECTS MARKETED TO DATE(Launched in 2017)

ProjectNo. of

Units1 26 Newton 180

2 Artra (New Launch) 400

3 Goodwood Grand 65

4 Kandis Residences 130

5 Le Quest (New Launch) 516

6 Leedon Residences 381

7 Lloyd Sixty Five 76

8 Marina Collection 124

9 Martin Modern (New Launch) 450

10 Pearl Island 10

11 Queens Peak 736

12 Reflections at Keppel Bay 1,129

13 The Line at Tanjong Rhu 130

14The Peak at Cairnhill II

(New Launch) 60

15 Three Balmoral 40

Source: PropNex, Not inclusive of Commercial/ Industrial ProjectsTOTAL 4,427

Bold – Appointed after initial launch

PROJECTS MARKETED TO DATE(Launched in 2018)

Project No. of Units

1 New Futura 124

2 The Tapestry 861

3 8 Hullet 44

4 Wallich Residences 181

5 Rivercove Residences 628

6 Twin Vew 520

7 120 Grange 56

8 Margaret Ville 309

9 The Garden Residences 613

10 The Enclave @ Holland 26

11 Marina One Residences 521

12 South Beach Residences 190

13 3 Cuscaden* 96

14 3 Orchard by the Park 77

15 Riverfront Residences 1,472

16 Park Colonial 805

Project No. of Units

17 Daintree Residences 327

18 The Tre Ver 729

19 Jadescape 1,206

20 Bukit 828 34

21 Mont Botanik 108

22 Mayfair Gardens 215

23 The Jovell 428

24 8 St Thomas 250

25 Belgravia Green* 81

26 Whistler Grand* 716

27 Kent Ridge Hill

Residences*548

28 Amber 45 139

29 Cashew Green 19

30 Mayfair Modern* 171

31 Parc Esta* 1,399

TOTAL 12,893

Source: PropNex, Not inclusive of Commercial/ Industrial Projects

Bold: Take-over projects

PROJECTS PERFORMANCE IN 2018

✓PropNex was involved in

31 project launches in 2018:

26 were new launches and 5 were

appointed after the initial launch.

✓The Group closed the highest number

of units in 21 of these 26 new launches,

against other joint marketing agencies

during the launch weekend.

✓ Anticipated line-up of 69 projects with approximately 25,000

units as government land bids and collective sales secured by

developers in 2017/18 will be ready for launches in 2019/20.

✓ As at 23 April 19, PropNex is appointed for 44 new projects,

with approximately 19,000 units earmarked

to be launched in 2019

✓ Other existing projects/units available for sale in 2019

✓ As of URA 4Q 2018 Figures:

Approximately 35,000 unsold units (including ECs) with planning

approvals

PROJECTS LINED UP IN 2019

ESTIMATED

LAUNCH

PROJECT NAME LOCATION DEVELOPER EST. NO OF

UNITS

1 H1 2019 UPTOWN @ FARRER PERUMAL ROAD LOW KENG HUAT 116

2 H1 2019PARKWOOD

COLLECTION

LORONG 1 REALTY

PARK

FANTASIA

INVESTMENT

(SINGAPORE)

53

3 H1 2019 RV ALTITUDE RIVER VALLEY ROADROXY PACIFIC

HOLDINGS140

4 H1 2019 *DUNEARN 386 DUNEARN COURTROXY PACIFIC

HOLDINGS35

5 H1 2019 *NORMANTON PARK NORMANTON PARKKINGSFORD

DEVELOPMENT1,862

6 H1 2019 *PARC CLEMATIS Jalan Lempeng SingHaiyi Group 1,468

7 H1 2019 *ONE MEYER Meyer Road Sustained Land 60

8 H1 2019*JERVOIS PRIVE

Jervois RoadSpring Court owner-led

consortium50

9 H1 2019 *LATTICE ONE Seraya Crescent Tee Land 40

*Former name/no appointed project name



ESTIMATEDLAUNCH


UNITS

10 H1 2019 *AMBER PARK AMBER GARDENS CDL / HONG LEONG 592

11 H1 2019 TREASURE AT TAMPINES TAMPINES STREET 11 SIM LIAN HOLDINGS 2,203

12 H1 2019 *HAUS ON HANDY HANDY ROAD CDL 188

13 H1 2019 *CHANGI GARDENUPPER CHANGI ROAD

NORTHCHIP ENG SENG 300

14 H1 2019 THE GAZANIA HOW SUN DRIVE SINGHAIYI GROUP 250

15 H1 2019 THE LILIUM HOW SUN ROAD SINGHAIYI GROUP 80

16 H1 2019 *THE ANTARES MATTAR ROADTIONG AIK / HOCK

LIAN SENG250

17 H1 2019 *SILAT AVENUE SILAT AVENUEUOL / UIC / KHENG

LEONG1,074

18 H1 2019 *KEMAMAN POINT BALESTIER ROAD SOILBUILD GROUP 120

19 H1 2019 *SUMANG WALK SUMANG WALK CDL / TID 820


ESTIMATEDLAUNCH


UNITS

20 H1 2019 *35 GILSTEAD GILSTEAD ROADTEE LAND / TG

DEVELOPMENT70

21 H1 2019*CAIRNHILL

MANSIONSCAIRNHILL ROAD LOW KENG HUAT 200

22 H1 2019 *SENGKANG CENTRALSENG KANG

CENTRALCAPITALAND / CDL 700

23 H1 2019 *DAIRY FARM ROAD DAIRY FARM ROAD UED RESIDENTIAL 589

24 H1 2019*JALAN JURONG

KECHIL

JALAN JURONG

KECHIL

COHL SINGAPORE AND

CSC LAND284

25 H1 2019 *CASA MEYFORT MEYER ROAD GUOCOLAND 310

26 H1 2019 *CAIRNHILL HEIGHTS CAIRNHILL RISETIONG SENG AND OCEAN

SKY50

27 H1 2019 *TULIP GARDEN FARRER ROADMCL LAND / YANLORD

GROUP670

28 H1 2019 *DUNEARN GARDENS DUNEARN ROAD EL DEVELOPMENT 348

29 H1 2019 *EUNOS MANSIONBEDOK RESERVOIR

ROADFRAGRANCE GROUP 230



ESTIMATEDLAUNCH


UNITS

30 H1 2019*KATONG PARK

TOWERSARTHUR ROAD BUKIT SEMBAWANG 390

31 H1 2019 *MAKEWAY VIEWMAKEWAY

AVENUEBUKIT SEMBAWANG 150

32 H1 2019 *THE ESSENCECHONG KUO

ROAD

LIAN SOON HOLDINGS / OKP

LAND80

33 H1 2019 *KISMIS VIEW LORONG KISMISROXY PACIFIC JOLDINGS /

TONG ENG160

34 H1 2019 *CITY TOWERSBUKIT TIMAH

ROADJAPURA DEVELOPMENT 290

35 H1 2019*PEARL BANK

APARTMENTSPEARL BANK CAPITALAND 810

36 H1 2019 *RIVIERA POINT KIM YAM ROAD MACLY GROUP 60

37 H1 2019 *HOLLAND ROAD HOLLAND ROAD FAR EAST ORGANIZATION 850

38 H1 2019 *CUSCADEN ROAD CUSCADEN ROAD

SC GLOBAL / NEW WORLD

DEVELOPMENT / FAR EAST

CONSORTIUM

220

39 H1 2019 *ROYALVILLEBUKIT TIMAH

ROADALLGREEN PROPERTIES 320



ESTIMATED

LAUNCH

PROJECT NAME LOCATION DEVELOPER EST. NO

OF UNITS

40 H1 2019 JUNIPER HILL EWE BOON ROAD ALLGREEN PROPERTIES 115

41 H1 2019 *PARKWAY MANSIONS AMBER ROAD SUSTAINED LAND 140

42 H1 2019 FYVE DERBYSHIRE DERBYSHIRE ROAD ROXY PACIFIC HOLDINGS 71

43 H1 2019 *CHANCERY COURT DUNEARN ROAD FAR EAST ORGANIZATION 480

44 H1 2019*ROYAL OAK

RESIDENCEANDERSON ROAD FAR EAST CONSORTIUM 110

45 H1 2019 *PARK HOUSEORCHARD

BOULEVARDSHUN TAK HOLDINGS 170

46 H1 2019 *NASSIM NASSIM ROAD SHUN TAK HOLDINGS 123

47 H1 2019 *JIAK KIM STREET JIAK KIM STREET FRASERS CENTREPOINT 455

48 H1 2019 *MEYERHOUSE MEYER ROAD UOL / KHENG LEONG 56

49 H1 2019 *HILLVIEW RISE HILLVIEW RISE HONG LEONG 570



ESTIMATED

LAUNCH

PROJECT NAME LOCATION DEVELOPER EST. NO

OF

UNITS

50 H1 2019*Lodge 77

Upper East Coast

Road KTC Group 50

51 H1 2019Rezi 24

Lorong 24 GeylangKSH Holdings, Lian Beng

Group & Heeton Holdings 90

52 H1 2019 Petit Jervois Jervois Road SC Global Developments 55

53 H1 2019 *Toho Mansion Holland Road Koh Brothers Group 90

54 H1 2019Fourth Avenue

ResidencesFourth Avenue Allgreen properties

476

55 H1 2019 1953 1 Tessensohn Road Oxley Holdings 58

56 H1 2019Parkwood

ResidencesYio Chu Kang Road Oxley Holdings 18

57 H1 2019 Boulevard 88 Orchard Boulevard CDL 154

58 H1 2019 Asia Gardens Everton Road SUSTAINED LAND 264

59 H2 2019 *Pomex Court Lorong 101 Changi K16 Development 40

60 H2 2019*Goh & Goh Building

Upper Bukit Timah

Road BBR Holdings

120

61 H2 2019*Landmark Tower

Chin Swee RoadZACD Group, MCC Land &

Sin Soon Lee Realty 530



ESTIMATED

LAUNCH


UNITS

62 H2 2019 *Goodluck Garden Toh Tuck Road

Qingjian Group &

Perennial Real Estate

Holdings 669

64 H2 2019 PHOENIX HEIGHT PHOENIX ROADOKP HOLDINGS /

USB HOLDINGS79

65 H2 2019 *PACIFIC MANSIONRIVER VALLEY

CLOSE

GUCCOLAND / HONG

LEONG720

66 H2 2019*HOLLANDIA AND

THE ESTORILHOLLAND ROAD FEC INTERNATIONAL 310

67 H2 2019*ANCHORVALE CRESCENT

(EC)

ANCHORVALE

CRESCENT

EVIA REAL ESTATE /

GAMUDA550

68 H2 2019 *CANBERRA LINK (EC) CANBERRA LINKHOI HUP / SUNWAY

DEVELOPMENTS580

69 H2 2019 *BROOKVALE PARK BROOKVALE WALKHOI HUP / SUNWAY

DEVELOPMENTS790

* ESTIMATED 2019 TOTAL UNITS TO BE LAUNCHED 25,307



WHAT SETS US APART

Largest Real Estate Agency

Resilient Business Model

SINGAPORE’S LARGEST LISTED REAL ESTATE AGENCY

Top 4 property agencies in Singapore by Agent Count

*Source: The Council for Estate Agencies (“CEA”) as at 1 Jan 2019,

PropNex’s number of

salespersons have grown by

14.8%● As at 23 Apr 2019 stands at 7,670**

● Y-O-Y from 6,684 to 7,400*

**Source: The Council for Estate Agencies (“CEA”),

BUSINESS STRATEGIES & PLANS

✓Enhancing Competitiveness and Operations

of our real estate brokerage business

✓Local and Regional Expansion

✓Expansion of our range of Business Services

✓ Increasing Productivity through Enhancement of our

Technological Capabilities

● Impactful Training and Development Programmes:

(More than 20,000 attendees)

- Jumpstart Trainings

- Power Sales Booster Trainings (Mega-scale)

- PropNex Signature Salespersons’ and Leadership

Bootcamps (more than 1,000 graduates in the last seven

months across Indonesia, Malaysia, Vietnam and Singapore.)

- Post Cooling Measures Trainings

- 4 x Quarterly Conventions

for salespersons to better guide and help home buyers and

investors achieve greater results in their property investment

ROBUST TRAININGS TO EMPOWER OUR SALESPERSONS

ROBUST TRAININGS: JUMPSTART 2019

Full house attendance

at Kallang Theatre

on 22 Jan 2019

PROPNEX SIGNATURES:SALESPERSONS’ BOOTCAMP

15 to 17 Jan 2019, 300 attendees

from PropNex Singapore,

PropNex Indonesia,

PropNex Malaysia, PropNex Vietnam

ROBUST TRAININGS:QUARTERLY CONVENTIONS

14 August 2018

President Madam Halimah Yacob

attended our August convention

ROBUST TRAININGS:QUARTERLY CONVENTIONS

19 March 2019

Minister Heng Swee Kiat

with over 3,000 attendees

PROPNEX CONSUMER SEMINARS

PropNex engages home investors in empowering

them for better informed decisions in their real estate

investment journey.

2018 TOTAL OF 30 CONSUMER SEMINARS were

conducted empowering over 7,000 consumers.

2019, continuing our FULL HOUSE CONSUMER

SEMINARS to help home investors better understand

the impact of the latest cooling measures and

opportunities ahead.

2019 First Consumer Seminar of the year was

conducted by Executive Chairman & CEO

Ismail Gafoor

23 Feb 2019

At the newly expanded

PropNex Office

(Level 18)



Stirling Residences

Consumer Seminar by

Kelvin Fong (16 Apr)

Florence Residences

Consumer Seminar by


Affinity at Serangoon

Consumer Seminar by


Thank you

37

Strictly Private & Confidential

SHARE BUY-BACK

MANDATE

38

Rationale

• Increase shareholders’ value: Enhance ROE

• Greater control over capital structure

• Return surplus cash in cost-efficient manner

SHARE BUY-BACK MANDATE

Requirements to Initiate Buy-back

• Upon annual approval by shareholders

• Beneficial to Co. & shareholders

• No material adverse effect financial position

• Profitable & solvent


When Not to Buy?

• Before announcement of price-sensitive devt

• Before announcement of results• Quarterly: 2 weeks

• Full Year: 1 month

• Public float ~ 10%

• Disrupt orderly trading of shares


Terms

• ≤ 10% of issued shares

• Ave closing price (“ACP”) of previous 5 trading days

• Market purchase ≤ 105% of ACP

• Off-market purchase ≤ 120% of ACP

• Orderly purchase of shares


Orderly Purchase of Shares

• Aug18 to Mar 2019 mth vol: 4m to 11m shares

• Ave daily vol ~400k shares

• Limit daily buy-back to 60% of daily ave, i.e. ~240k shares

• If buy 3m shares, buy back over 13 trading days (3m/0.24m shares)


Strictly Private & Confidential

Thank you

44

propnex limited agm 25 april 2019investor.propnex.com/newsroom/20190425_174502_oyy... ·...

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