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PropNex Limited (SGX:OYY) last week reported its latest full-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like the results were a bit of a negative overall. While revenues of S$783m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 7.1% to hit S$0.055 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for PropNex
After the latest results, the five analysts covering PropNex are now predicting revenues of S$933.7m in 2025. If met, this would reflect a decent 19% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 40% to S$0.078. Yet prior to the latest earnings, the analysts had been anticipated revenues of S$849.4m and earnings per share (EPS) of S$0.07 in 2025. So it seems there's been a definite increase in optimism about PropNex's future following the latest results, with a decent improvement in the earnings per share forecasts in particular.
It will come as no surprise to learn that the analysts have increased their price target for PropNex 11% to S$1.11on the back of these upgrades. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on PropNex, with the most bullish analyst valuing it at S$1.30 and the most bearish at S$0.87 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the PropNex's past performance and to peers in the same industry. The analysts are definitely expecting PropNex's growth to accelerate, with the forecast 19% annualised growth to the end of 2025 ranking favourably alongside historical growth of 11% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 0.8% per year. So it's clear with the acceleration in growth, PropNex is expected to grow meaningfully faster than the wider industry.