Oxley Holdings

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03 Jun 2013 22:15 #14325 by michaelgoh
Oxley Holdings was created by michaelgoh
Hi guys,

Oxley recently announced 2 major acquisitions. First one being a $315 million deal on the acquisition of Pines Club. Second one being a $111 million deal on the acquisition of a piece of land in Malaysia. This adds up to about 40.8% of their market cap!

Even though Oxley announced these 2 major deals, the counter has not moved much recently. Not sure if the market has captured these news yet.

At 40% discount to RNAV, the target price I have come up with is 48cents. There's still a upside potential of 35% from current market price of 35.5cents!!

What do you guys think? ;)
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04 Jun 2013 09:15 - 04 Jun 2013 09:16 #14334 by divads
Replied by divads on topic Oxley Holdings
must wait for news on how they going to develop the land. Oxley and HAFARY are brothers and both has the potential to rocket as the 2 counters are tightly controlled.

Has the making of ASIASONS (listed in sgx)

I suspect Oxley and Hafary will merge in the near future
Last edit: 04 Jun 2013 09:16 by divads.
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04 Jun 2013 19:05 #14349 by Val
Replied by Val on topic Oxley Holdings
michael, do you know the profitability of the 2 projects? these are indeed biggie projects. It's early days still and there is no clarity on the profitability yet. traditionally, Oxley gives very little information in its announcements. and i am rather hesitant about investing in it in a big way, just as analysts are hesitant about covering it. or maybe Oxley don't particularly pay much attention to analysts?

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04 Jun 2013 21:31 #14354 by michaelgoh
Replied by michaelgoh on topic Oxley Holdings
divads: CEO of Oxley has a substantial stake in Hafary but what's your reason suggesting a possible merger between Oxley and Hafary?

For pines club acquisition, they are supposedly going to build a hotel.

Viva: Like you said, it's still early days for these 2 big projects. However Oxley's track record has been very good, achieving mostly 100% selling rate for their development projects in a short time.

Not sure why they don't pay much attention to analysts though. They recently issued 150m worth of medium term debt to finance acquisition of pines club.

Let's wait and see what develops..
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10 Jun 2013 00:34 #14452 by Dongdaemun
Replied by Dongdaemun on topic Oxley Holdings
thank you michael -- i was wondering if you would like to share your working for your estimate of the RNAV of Oxley. few people can do it because the projects are not very transparent.

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16 Jun 2013 11:50 #14557 by Dongdaemun
Replied by Dongdaemun on topic Oxley Holdings
Michael: You read that Oxley is going into Cambodia? What do you think?

I am impressed with this company's energy and capability. Cambodia is still a backward country with lots of upside for its property market, I think.

Malaysia is more mature but so long as there is business potential, Oxley has shown an astuteness in identifying opportunities.


It is entering into 2 land development projects in Kuala Lumpur and Selangor, Malaysia.


Oxley's CEO Ching Chiat Kwong told BT: "Our plans are currently still quite fluid, as we need to first determine the best way to maximise the plot potential.

"At this point in time, our inclination is to move in the direction of an integrated development, combining residential, commercial and possibly hospitality units within the project."

SIAS Research analyst Ng Kian Teck saw Oxley's move as a way of testing out the Cambodian market first, since the acquisition is "rather small" and with a joint venture partner. Oxley probably also had to comply with foreign ownership restrictions, he said.

"Oxley has quite a big portfolio in Singapore and they will continue to build their presence here. The overseas acquisitions are probably part of their strategy to diversify their risk and open themselves to other opportunities."

He has an "increase exposure" position on the stock and values it at 44.5 cents per share.
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