OneApex Limited: A Review of Financial Performance with 15.1 Million Net Profit Growth

Business Description

OneApex Limited is a Singapore-based company involved in property development, property investment, property management, and financial services. The company’s principal place of business is in Singapore, and it operates primarily within the Singaporean market.

Industry Position and Competitors

The company operates within the real estate and financial services industry. The report does not detail specific competitors or market share, so further industry analysis would be needed to understand its position relative to competitors.

Revenue Streams and Customer Base

OneApex’s revenue primarily comes from property development, specifically the sale of developed properties like Apex Foodworks, which generated S\$76.2 million in revenue this year. Additional revenue is derived from financial services, which include mortgage referral services and introducer fees.

Financial Statement Analysis

Income Statement

– **Revenue**: Significant increase to S\$77.8 million from S\$1.0 million in FY2023, primarily driven by Apex Foodworks. – **Net Profit**: The company reported a net profit of approximately S\$15.1 million for FY2024, compared to a loss of S\$0.8 million in FY2023. – **Employee Benefits**: Increased due to higher bonuses and commissions.

Balance Sheet

– **Assets**: Total assets decreased to S\$25.0 million from S\$66.2 million, mainly due to the sale of development properties. – **Liabilities**: Total liabilities decreased significantly from S\$53.8 million to S\$4.3 million, with the repayment of bank loans being a major factor. – **Equity**: Improved due to retained earnings from profit.

Cash Flow Statement

– **Operating Activities**: Net cash generated was S\$25.6 million, up from S\$2.8 million, due to progress billing on Apex Foodworks. – **Investing Activities**: Net cash inflow of S\$5.2 million, primarily from the disposal of an associate company. – **Financing Activities**: Outflows of S\$23.3 million due to loan repayments and dividend payments.

Dividend Proposals

The company has proposed an ordinary dividend of 1 cent per share and a special dividend of 8.5 cents per share, pending shareholder approval.

Key Findings

– **Strengths**: The company has successfully completed and sold a major development project, significantly reducing liabilities and increasing net profit. – **Risks**: The reliance on single projects for revenue spikes could be risky if future developments do not perform as expected.

Special Activities

The company completed the sale of its 30% stake in an associated company, Tuas Seatown Dormitory Pte Ltd, for S\$5.2 million, contributing to financial stability.

Recommendations

– **For Current Holders**: Consider holding the stock due to the strong financial turnaround and proposed dividends. The company’s improved balance sheet and profitability are positive signs. – **For Potential Investors**: Evaluate the stock as a potential buy, given the significant profit growth and dividend yield. However, be mindful of risks associated with the company’s project-based revenue model.

Report Date

The report covers the financial year ended 30 September 2024 and was issued on 28 November 2024.

Disclaimer

This analysis is based on the provided financial statements and does not constitute financial advice. Investors should consider their own financial situation and consult with a financial advisor before making investment decisions.

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