Excerpts from UOBKayHian report Propnex (SGX: OYY)

• Propnex reported a 13% yoy decline in PATMI, which was largely in line with our estimates.
• Its results were negatively impacted by a lack of new property launches in 1H22 as well as higher staff costs and impairments. However, 2H22 should see sequentially higher launches which will benefit the company.
• Its interim dividend of S$0.055 was better than expected, and implies an annualised yield of 6.6%.

Maintain BUY. Target price: S$2.07. Propnex results was in line with expectations Propnex reported 1H22 results that were in line with our expectations, with PATMI falling 13% yoy to S$27.3m and accounting for 48% of our full year estimate. The company saw a 19% yoy decline in project marketing revenue due to a lack of new launches in 1H22; however, this was somewhat offset by its other businesses – notably, the rental and private resale segments saw 28% and 12% yoy increases in revenue respectively. An interim dividend of S$0.055 was declared...