IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

IPOs and Catalysts/Events

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Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/propnex-ltd" target="_blank" data-smartkarma-citation="entities:27209:1" rel="noopener">Propnex Ltd (PROP SP)</a> is Singapore’s largest listed real estate agency. Propnex’s shares have been on tear are up around 150% YTD helped by strong sales momentum in both new home and resales transactions. Singapore’s property market has been sizzling, with the Private Property Price Index (PPI) increasing each quarter from 2Q20 to 1Q21. The rate of increase in the PPI slowed in 2Q21 due to lockdowns which impacted property viewings and the launch of new projects for sale. </p><div class="content-highlight">
<p>Despite the re-introduction of partial lockdowns, Propnex is forecasted to deliver a strong 2021 due to the robust transaction volumes posted by all its segments in 1H21. However, the consensus is forecasting that 2021 will mark the peak earnings as the positive tailwinds of 2021 will be difficult to sustain into 2022 and beyond.</p>
<p>Propnex currently trades at FY21 P/E of 12.3x and a cash-adjusted FY21 P/E of 10.3x. The FY21 P/E of 12.3x is broadly in line with the average 1-year forward P/E of 12.2x but a 15% premium to the average forward P/E of 10.7x since IPO. At the last close price, we think that most of the positive expectations have been priced in and the shares are fully priced.  </p>
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Propnex Ltd (PROP SP) is Singapore’s largest listed real estate agency. Propnex’s shares have been on tear are up around 150% YTD helped by strong sales momentum in both new home and resales transactions. Singapore’s property market has been sizzling, with the Private Property Price Index (PPI) increasing each quarter from 2Q20 to 1Q21. The rate of increase in the PPI slowed in 2Q21 due to lockdowns which impacted property viewings and the launch of new projects for sale. 
Despite the re-introduction of partial lockdowns, Propnex is forecasted to deliver a strong 2021 due to the robust transaction volumes posted by all its segments in 1H21. However, the consensus is forecasting that 2021 will mark the peak earnings as the positive tailwinds of 2021 will be difficult to sustain into 2022 and beyond.
Propnex currently trades at FY21 P/E of 12.3x and a cash-adjusted FY21 P/E of 10.3x. The FY21 P/E of 12.3x is broadly in line with the average 1-year forward P/E of 12.2x but a 15% premium to the average forward P/E of 10.7x since IPO. At the last close price, we think that most of the positive expectations have been priced in and the shares are fully priced.  


Propnex Ltd

Propnex: As Good as It Gets?