Oxley Holdings

VOYAGE RESEARCH, Aug 25

OXLEY Holdings Ltd (Oxley) posted full year revenue and PAT (profit after tax) of S$1.07 billion and S$307 million, forming about 92-93 per cent of our full year forecasts. Over the last few months, the company announced:

• the launch of The Bridge in Cambodia, which is approximately 81 per cent sold,
• higher sales in Royal Wharf Phase 1 which is almost fully sold,
• more units sold in Singapore projects despite the slow market,
• the appointment of Accor for the hotel development along Steven Road and
• the termination of some Malaysian MOU (memorandum of understanding) agreements as some of the conditions were not met.

The robust overseas projects sales have prompted us to be more optimistic about the company's outlook. The company is likely to launch the phase 2 of Royal Wharf and Naga 2 project in Q4 2014 as Oxley rides on the sales momentum. We continue to expect Oxley to finish selling its remaining projects in Singapore and the hotel development along Steven Road will generate valuation surplus of about S$360 million. Recommend "invest" with an intrinsic value of S$0.885.

INVEST