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!!
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?
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.