• FY25 results were within expectations. Revenue/adj. PATMI was 99/98% of our FY25e forecast. 4Q25 PATMI rose 17% YoY to S$33.4mn. Earnings growth came from 11% rise in revenue, together with record gross margins. 
• Sheng Siong (SSG) grew its store footprint by a record 98.4k sft or 12 new stores to 87 in FY25. The new base of stores is generating 10% points of revenue growth in 2H25. It should accelerate to 12% in FY26e. SSG is potentially expanding more aggressively outside the HDB store into retail malls. There have been better terms offered.
• We push up our FY26e earnings by 2%. Our target price is raised to S$2.82 (prev. S$2.55). Our valuation is raised to the higher quartile 25x PE of the 10-year average. Our ACCUMULATE recommendation is maintained. The record number of store openings in FY25 will carry over to revenue and earnings growth in FY26. Another support for earnings is the continuing rise in gross margins, aided by higher sales and greater bargaining power. Opening stores in retail malls is an additional pathway to expand their footprint more quickly.

• FY25 revenue was within expectations. PATMI was below our FY25e estimates at 89%. Margins and interest income were below our estimates. FY25 PATMI jumped 72% to S$70.4mn. FY25 ordinary dividends jumped 81% to 9.5 cents (or 100% payout ratio). 
• Guidance for FY26e is for a 17% decline in new home sales (excl. EC). Both private and HDB resale volumes are expected to be flat, supported by 3-4% price growth. 1H26 earnings will register the strong unbilled sales in 4Q25.
• We lower our FY26e PATMI by 15% to S$70.7mn. Our DCF target price is raised to S$2.08 (prev. S$2.02) as we roll over our forecast. We downgrade our recommendation from BUY to ACCUMULATE. The lower number of launches and absence of pent-up demand will impact new home sales. An expected 8,800 units are to be launched in 2026, down from last year’s 11,409 units (excl. EC). PropNex pays a yield of 4.9%, supported by net cash of S$149mn and ROE of 59%. It remains the leader in real estate agency with a market share of 61% of HDB and private residential transactions.

Updates Net Profit Attributable to Shareholders Surpassed 20 billion Yuan Mark for First Time CMOC Group has released its 2025 performance forecast. The company expects to achieve a net profit attributable to shareholders of the parent company in the range of 20.0 billion to 20.8 billion yuan (RMB, same below) for the full year, representing a year-on-year increase of 47.80% to 53.71%. After deducting non-recurring gains and losses, the net profit attributable to shareholders is projected to be between 20.4...
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