Excerpts from analyst's report
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In overseas markets, the group continues to make progress in its rollout of projects. Following the recent launch of Royal Wharf Phase 2 (London), the group has sold over 1400 units in the 3,300-unit development. In Cambodia, the group has sold more than half of the residential/soho units in The Bridge.
Oxley CEO Ching Chiat Kwong speaking with shareholders after the recent AGM. Photo by Mervyn Sim.The next major launch is the KLCC project in early 2015, after legal completion of the land purchase in Jan 2015. Early indications suggest pricing will be above RM2000 psf for the residential component, and the group is in the midst of securing an operator for a 6-star hotel for one of the 2 hotel blocks. With the recent acquisition of land development rights in Myanmar, the group has extended its reach to 5 overseas countries.
Construction is proceeding apace for the group’s hotel-cum-commercial development at the PINES. On completion in 2016, the group will have a steady stream of recurring income. The group recently completed a SGD40m of a commercial development in Chiba Prefecture, Japan, at a fraction of its historical cost, which will add to its recurring income stream.
Construction is proceeding apace for the group’s hotel-cum-commercial development at the PINES. On completion in 2016, the group will have a steady stream of recurring income. Oxley recently purchased an operational commercial building in Chiba, Japan for SGD40m, at a bargain level, which will further add to its recurring income.
We continue to like the stock for its dynamic management and its good earnings visibility. Good take-ups in its up-coming overseas launches will help narrow the 54% discount to its RNAV of SGD1.14/share. Our TP of SGD0.91 is based on a 20% discount to its RNAV. Maintain BUY.
Recent story: @ Oxley’s AGM: Clarity on London project, KL rejections, Cambodia ventures, etc
Recent story: @ Oxley’s AGM: Clarity on London project, KL rejections, Cambodia ventures, etc
