PROPNEX LIMITED AGM 25 April 2019 - PropNex Investor Relations ...
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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.
Page 2
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
Page 3
FINANCIAL SNAPSHOT
Income Statement
Page 4
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$12.95m, 66.7% of PATNCI)
• Proposed dividend payout = 143% of post-IPO profits
• 6.3% yield at 56 cents per share @ 22 Feb 2019
• 10.8% annualised dividend yield based on IPO price of 65
cents
*Source: The Council for Estate Agencies (“CEA”) as at 1 Jan 2019
• ,
Page 5
FY18 INCOME STATEMENT
(in S$'000) FY2018 FY2017 Sales force FY18: 7400,
Rev 431,539 331,851 30% FY17: 6684
COS (390,177) (298,096) 31% • Agency FY18: $307.8m,
GP 41,362 33,755 FY17: $216.6m
• Proj Mktg FY18: $117.3m,
GP% 10% 10% FY17: $109.8m
Other income 4,202 2,938 43%
Staff costs (12,069) (8,283) 46%
Expenses (ex IPO) (6,009) (6,253) (4%)
IPO expenses (1,113) - NM
NPBT 26,373 22,157 19% • Ave. HC FY18: 165, FY17:
NP% 6% 7% 147
• Sal. increment & bonuses
Tax (4,436) (3,271) 36% • Exec. Dir. salary
NPAT 21,937 18,886 16%
NPAT ex. IPO exp 23,050 18,886 22%
EPS (in cents) 5.72 5.30 7.9% Page 6
GROUP REVENUE
REVENUE (S$’ M)
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
Page 7
CAGR 45.3%
CAGR 29.2%
CAGR 40.5%
Page 8
REVENUE BREAKDOWN
43%
40%
Source: PropNex
Page 9
MARKET SHARE
HDB RESALE
Market Share By No of Units
Source: Frost & Sullivan Pte Ltd, HDB
The market share information also includes transactions where PropNex salespersons act on behalf of buyers and sellers in co-broking with external agencies.
Page 10MARKET SHARE
PRIVATE RESALE
Market Share By No of Units
Source: Frost & Sullivan Pte Ltd, URA
The market share information also includes transactions where PropNex salespersons act on behalf of buyers and sellers in co-broking with external agencies.
Page 11MARKET SHARE
PRIVATE LEASING
Market Share By No of Units
Source: Frost & Sullivan Pte Ltd, URA
The market share information also includes transactions where PropNex salespersons act on behalf of buyers and sellers in co-broking with external agencies.
Page 11MARKET SHARE
NEW LAUNCHES
(Private Primary Market)
Market Share By No of Units
Source: Frost & Sullivan Pte Ltd, URA
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.
Page 12BUSINESS 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
Page 14PROJECTS MARKETED TO DATE
(Launched in 2017)
No. of
Project
Units
1 26 Newton 180 Bold – Appointed after initial launch
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
The Peak at Cairnhill II
14 60
(New Launch)
15 Three Balmoral 40
Source: PropNex, Not inclusive of
TOTAL Page 15 4,427 Commercial/ Industrial ProjectsPROJECTS MARKETED TO DATE
(Launched in 2018) Source: PropNex, Not inclusive of
Commercial/ Industrial Projects
Project No. of Units Project No. of Units
1 New Futura 124 17 Daintree Residences 327
2 The Tapestry 861 18 The Tre Ver 729
3 8 Hullet 44 19 Jadescape 1,206
4 Wallich Residences 181 20 Bukit 828 34
5 Rivercove Residences 628 21 Mont Botanik 108
6 Twin Vew 520 22 Mayfair Gardens 215
7 120 Grange 56 23 The Jovell 428
8 Margaret Ville 309 24 8 St Thomas 250
9 The Garden Residences 613 25 Belgravia Green* 81
26 Whistler Grand* 716
10 The Enclave @ Holland 26
Kent Ridge Hill
11 Marina One Residences 521 27 548
Residences*
12 South Beach Residences 190
13 3 Cuscaden* 96 28 Amber 45 139
14 3 Orchard by the Park 77 29 Cashew Green 19
15 Riverfront Residences 1,472 30 Mayfair Modern* 171
16 Park Colonial 805 31 Parc Esta* 1,399
Bold: Take-over projects
TOTAL Page 16
12,893PROJECTS 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.
Page 17PROJECTS LINED UP IN
2019
✓ 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
Page 18PROJECTS LINED UP
IN 2019
ESTIMATED PROJECT NAME LOCATION DEVELOPER EST. NO OF
LAUNCH UNITS
1 H1 2019 UPTOWN @ FARRER PERUMAL ROAD LOW KENG HUAT 116
FANTASIA
PARKWOOD LORONG 1 REALTY
2 H1 2019 INVESTMENT 53
COLLECTION PARK
(SINGAPORE)
ROXY PACIFIC
3 H1 2019 RV ALTITUDE RIVER VALLEY ROAD 140
HOLDINGS
ROXY PACIFIC
4 H1 2019 *DUNEARN 386 DUNEARN COURT 35
HOLDINGS
KINGSFORD
5 H1 2019 *NORMANTON PARK NORMANTON PARK 1,862
DEVELOPMENT
6 H1 2019 *PARC CLEMATIS Jalan Lempeng SingHaiyi Group 1,468
7 H1 2019 *ONE MEYER Meyer Road Sustained Land 60
Spring Court owner-led
8 H1 2019 Jervois Road 50
*JERVOIS PRIVE consortium
9 H1 2019 *LATTICE ONE Seraya Crescent Tee Land 40
Page 19 *Former name/no appointed project namePROJECTS LINED UP
IN 2019
ESTIMATED PROJECT NAME LOCATION DEVELOPER EST. NO OF
LAUNCH 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
UPPER CHANGI ROAD
13 H1 2019 *CHANGI GARDEN CHIP ENG SENG 300
NORTH
14 H1 2019 THE GAZANIA HOW SUN DRIVE SINGHAIYI GROUP 250
15 H1 2019 THE LILIUM HOW SUN ROAD SINGHAIYI GROUP 80
TIONG AIK / HOCK
16 H1 2019 *THE ANTARES MATTAR ROAD 250
LIAN SENG
UOL / UIC / KHENG
17 H1 2019 *SILAT AVENUE SILAT AVENUE 1,074
LEONG
18 H1 2019 *KEMAMAN POINT BALESTIER ROAD SOILBUILD GROUP 120
19 H1 2019 *SUMANG WALK SUMANG WALK CDL / TID 820
*Former name/no appointed project name
Page 20PROJECTS LINED UP
IN 2019
ESTIMATED PROJECT NAME LOCATION DEVELOPER EST. NO OF
LAUNCH UNITS
TEE LAND / TG
20 H1 2019 *35 GILSTEAD GILSTEAD ROAD 70
DEVELOPMENT
*CAIRNHILL
21 H1 2019 CAIRNHILL ROAD LOW KENG HUAT 200
MANSIONS
SENG KANG
22 H1 2019 *SENGKANG CENTRAL CAPITALAND / CDL 700
CENTRAL
23 H1 2019 *DAIRY FARM ROAD DAIRY FARM ROAD UED RESIDENTIAL 589
*JALAN JURONG JALAN JURONG COHL SINGAPORE AND
24 H1 2019 284
KECHIL KECHIL CSC LAND
25 H1 2019 *CASA MEYFORT MEYER ROAD GUOCOLAND 310
TIONG SENG AND OCEAN
26 H1 2019 *CAIRNHILL HEIGHTS CAIRNHILL RISE 50
SKY
MCL LAND / YANLORD
27 H1 2019 *TULIP GARDEN FARRER ROAD 670
GROUP
28 H1 2019 *DUNEARN GARDENS DUNEARN ROAD EL DEVELOPMENT 348
BEDOK RESERVOIR
29 H1 2019 *EUNOS MANSION FRAGRANCE GROUP 230
ROAD
*Former name/no appointed project name
Page 21PROJECTS LINED UP
IN 2019
ESTIMATED PROJECT NAME LOCATION DEVELOPER EST. NO OF
LAUNCH UNITS
*KATONG PARK
30 H1 2019 ARTHUR ROAD BUKIT SEMBAWANG 390
TOWERS
MAKEWAY
31 H1 2019 *MAKEWAY VIEW BUKIT SEMBAWANG 150
AVENUE
CHONG KUO LIAN SOON HOLDINGS / OKP
32 H1 2019 *THE ESSENCE 80
ROAD LAND
ROXY PACIFIC JOLDINGS /
33 H1 2019 *KISMIS VIEW LORONG KISMIS 160
TONG ENG
BUKIT TIMAH
34 H1 2019 *CITY TOWERS JAPURA DEVELOPMENT 290
ROAD
*PEARL BANK
35 H1 2019 PEARL BANK CAPITALAND 810
APARTMENTS
36 H1 2019 *RIVIERA POINT KIM YAM ROAD MACLY GROUP 60
37 H1 2019 *HOLLAND ROAD HOLLAND ROAD FAR EAST ORGANIZATION 850
SC GLOBAL / NEW WORLD
38 H1 2019 *CUSCADEN ROAD CUSCADEN ROAD DEVELOPMENT / FAR EAST 220
CONSORTIUM
BUKIT TIMAH
39 H1 2019 *ROYALVILLE ALLGREEN PROPERTIES 320
ROAD
*Former name/no appointed project name
Page 22PROJECTS LINED UP
IN 2019
ESTIMATED PROJECT NAME LOCATION DEVELOPER EST. NO
LAUNCH 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
*ROYAL OAK
44 H1 2019 ANDERSON ROAD FAR EAST CONSORTIUM 110
RESIDENCE
ORCHARD
45 H1 2019 *PARK HOUSE SHUN TAK HOLDINGS 170
BOULEVARD
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
*Former name/no appointed project name
Page 23PROJECTS LINED UP
IN 2019
ESTIMATED PROJECT NAME LOCATION DEVELOPER EST. NO
LAUNCH OF
UNITS
Upper East Coast
50 H1 2019
*Lodge 77 Road KTC Group 50
KSH Holdings, Lian Beng
51 H1 2019 Lorong 24 Geylang
Rezi 24 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
Fourth Avenue
54 H1 2019 Fourth Avenue Allgreen properties
Residences 476
55 H1 2019 1953 1 Tessensohn Road Oxley Holdings 58
Parkwood
56 H1 2019 Yio Chu Kang Road Oxley Holdings 18
Residences
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
Upper Bukit Timah
60 H2 2019 BBR Holdings
*Goh & Goh Building Road 120
ZACD Group, MCC Land &
61 H2 2019 Chin Swee Road
*Landmark Tower Sin Soon Lee Realty 530
Page 24
*Former name/no appointed project namePROJECTS LINED UP
IN 2019
ESTIMATED PROJECT NAME LOCATION DEVELOPER EST. NO OF
LAUNCH UNITS
Qingjian Group &
62 H2 2019 *Goodluck Garden Toh Tuck Road Perennial Real Estate
Holdings 669
OKP HOLDINGS /
64 H2 2019 PHOENIX HEIGHT PHOENIX ROAD 79
USB HOLDINGS
RIVER VALLEY GUCCOLAND / HONG
65 H2 2019 *PACIFIC MANSION 720
CLOSE LEONG
*HOLLANDIA AND
66 H2 2019 HOLLAND ROAD FEC INTERNATIONAL 310
THE ESTORIL
*ANCHORVALE CRESCENT ANCHORVALE EVIA REAL ESTATE /
67 H2 2019 550
(EC) CRESCENT GAMUDA
HOI HUP / SUNWAY
68 H2 2019 *CANBERRA LINK (EC) CANBERRA LINK 580
DEVELOPMENTS
HOI HUP / SUNWAY
69 H2 2019 *BROOKVALE PARK BROOKVALE WALK 790
DEVELOPMENTS
* ESTIMATED 2019 TOTAL UNITS TO BE LAUNCHED 25,307
*Former name/no appointed project name
Page 25WHAT SETS US APART
Largest Real Estate Agency
Resilient Business Model
Page 26SINGAPORE’S LARGEST
LISTED REAL ESTATE AGENCY
Top 4 property agencies in Singapore PropNex’s number of
by Agent Count 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”)
,
*Source: The Council for Estate Agencies (“CEA”) as at 1 Jan 2019
,
Page 27BUSINESS 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
Page 28ROBUST TRAININGS TO
EMPOWER OUR SALESPERSONS
● 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
Page 29ROBUST TRAININGS: JUMPSTART 2019
Full house attendance
at Kallang Theatre
on 22 Jan 2019
Page 30PROPNEX SIGNATURES:
SALESPERSONS’ BOOTCAMP
15 to 17 Jan 2019, 300 attendees
from PropNex Singapore,
PropNex Indonesia,
PropNex Malaysia, PropNex Vietnam
Page 31ROBUST TRAININGS:
QUARTERLY CONVENTIONS
14 August 2018
President Madam Halimah Yacob
attended our August convention
Page 32ROBUST TRAININGS:
QUARTERLY CONVENTIONS
19 March 2019
Minister Heng Swee Kiat
with over 3,000 attendees
Page 33PROPNEX 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.
Page 34PROPNEX CONSUMER SEMINARS
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)
Page 35PROPNEX CONSUMER SEMINARS
Florence Residences
Consumer Seminar by
Kelvin Fong (22 Apr)
Stirling Residences
Consumer Seminar by
Kelvin Fong (16 Apr)
Affinity at Serangoon
Consumer Seminar by
Kelvin Fong (19 Apr)
Page 36Thank you
37SHARE BUY-BACK
MANDATE
Strictly Private & Confidential
38SHARE BUY-BACK MANDATE 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
SHARE BUY-BACK MANDATE 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
SHARE BUY-BACK MANDATE 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
SHARE BUY-BACK MANDATE 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)
Thank you
Strictly Private & Confidential
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