propnex limited agm 25 april 2019investor.propnex.com/newsroom/20190425_174502_oyy... ·...
TRANSCRIPT
PROPNEX LIMITED
AGM
25 April 2019
1
Disclaimer
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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
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FINANCIAL SNAPSHOT
Income Statement
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PROPNEX ACHIEVES RECORD
NET PROFIT OF S$21.9m IN FY18
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• 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$12.95m, 66.7% of PATNCI)
• Proposed dividend payout = 143% of post-IPO profits
• 6.3% yield at 56 cents per share @ 22 Feb 2019
• 10.8% annualised dividend yield based on IPO price of 65
cents
*Source: The Council for Estate Agencies (“CEA”) as at 1 Jan 2019• ,
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(in S$'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
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CAGR 29.2%
CAGR 45.3%
CAGR 40.5%
REVENUE BREAKDOWN
Source: PropNexPage 9
40%
43%
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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
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PRIVATE RESALE
Source: Frost & Sullivan Pte Ltd, URA
MARKET SHARE
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.
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PRIVATE LEASING
Source: Frost & Sullivan Pte Ltd, URA
MARKET SHARE
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.
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(Private Primary Market)
Source: Frost & Sullivan Pte Ltd, URA
MARKET SHARE
NEW LAUNCHES
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.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
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PROJECTS MARKETED TO DATE(Launched in 2017)
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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)
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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
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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.
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✓ 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
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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
PROJECTS LINED UP IN 2019
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PROJECTS LINED UP IN 2019
ESTIMATEDLAUNCH
PROJECT NAME LOCATION DEVELOPER EST. NO OF
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
*Former name/no appointed project name
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ESTIMATEDLAUNCH
PROJECT NAME LOCATION DEVELOPER EST. NO OF
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
PROJECTS LINED UP IN 2019
*Former name/no appointed project name
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ESTIMATEDLAUNCH
PROJECT NAME LOCATION DEVELOPER EST. NO OF
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
PROJECTS LINED UP IN 2019
*Former name/no appointed project name
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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
PROJECTS LINED UP IN 2019
*Former name/no appointed project name
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
PROJECTS LINED UP IN 2019
*Former name/no appointed project name Page 24
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ESTIMATED
LAUNCH
PROJECT NAME LOCATION DEVELOPER EST. NO OF
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
PROJECTS LINED UP IN 2019
*Former name/no appointed project name
WHAT SETS US APART
Largest Real Estate Agency
Resilient Business Model
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SINGAPORE’S LARGEST LISTED REAL ESTATE AGENCY
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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”),
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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
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ROBUST TRAININGS: JUMPSTART 2019
Full house attendance
at Kallang Theatre
on 22 Jan 2019
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PROPNEX SIGNATURES:SALESPERSONS’ BOOTCAMP
15 to 17 Jan 2019, 300 attendees
from PropNex Singapore,
PropNex Indonesia,
PropNex Malaysia, PropNex Vietnam
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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
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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.
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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)
PROPNEX CONSUMER SEMINARS
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PROPNEX CONSUMER SEMINARS
Stirling Residences
Consumer Seminar by
Kelvin Fong (16 Apr)
Florence Residences
Consumer Seminar by
Kelvin Fong (22 Apr)
Affinity at Serangoon
Consumer Seminar by
Kelvin Fong (19 Apr)
Thank you
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Strictly Private & Confidential
SHARE BUY-BACK
MANDATE
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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)
SHARE BUY-BACK MANDATE
Strictly Private & Confidential
Thank you
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