PropNex's net profit balloons by 96.7% in Q1 amidst market recovery

Net profit after tax rose to $16.18m in Q1, 2021 from $8.22m a year earlier.

Singapore real estate agency PropNex reported a 96.7% growth in net profit after tax (NPAT) for Q1 2021 to $16.2m, on the back of a 63.3% growth in revenue to $220.6m.

NPAT had nearly doubled compared to a year ago from $8.22m in Q1 2020. Earnings per share increased by 95.6% to $4.01c from $2.05c.

The group firm said that while the first quarter typically sees a lower transaction volume for the real estate market as a result of the festive period and the Lunar New Year holidays, the performance of the market in Q1 2021 had been encouraging.

“The Group’s growth in both top and bottom-line can be attributed to improved market sentiments, which are supported by expectations of a gradual economic recovery, a successful vaccine rollout, availability of ample liquidity and healthy housing demand. This was reflected in the strong take-up of new project launches which are attractively priced and well located. PropNex maintained its leadership position among competing marketing agencies for most of the new projects launched,” PropNex said in a release.

The positive performance of the group was driven by the higher number of transactions completed in 1Q2021 following the recovery of the private residential market from the property cooling measures of July 2018.

PropNex said it remains debt free, and its balance sheet robust with cash and cash equivalents of S$118.9m as at 31 March 2021, compared to $105.8m as at 31 December 2020.