- 3Q20
PATMI rose 10.6% YoY to S$6.8mn, far exceeding our forecast. 9M20
earnings form 111% of our FY20e forecast. Despite lockdown, new project
revenue was more resilient than expected.
- Revenue
from new projects rose 15% YoY to S$51.9mn. Higher market share,
billing of earlier projects and successful virtual selling were some of
the reasons.
- Net cash of S$94.7mn, up from 3Q19’s S$74.5mn.
- Maintain
BUY with a higher DCF TP of S$0.85, from S$0.70. Circuit breaker might
have affected resale and rental revenue but not new project sales.
Yields of 6% and cash flows of S$28mn p.a. with modest capex and
working-capital requirements are what we like about PropNex.