OXLEY HOLDINGS (OHL SP) reported 3QFY16 net profit of S$51m, a jump of 330% y/y, bringing the group's cumulative profits for the nine months ended March 2016 to $$132m.
| Oxley Holdings | |
| Share price: 44 c |
Target: 91 c |
During the quarter, the group booked in profits from seven of its residential and mixed development projects in Singapore, as well as a $25.7m gain generated from the sale of its investment property, Chiba Port Square, in Japan. The group also declared an interim dividend of 0.4cents/share for the quarter.
To date, Oxley has chalked up unbilled sales of $3.2bn across its Singapore ($1.5bn) and overseas ($1.7bn) projects, of which $2bn will be recognised over the next 12 months.
These include its high-margin mixed development projects such as Midtown, KAP and NEWest, as well as strata-sales of its commercial development Oxley Tower on Robinson Road. 
Oxley CEO Ching Chiat Kwong with shareholders after an AGM.
File photo: Mervyn SimMaiden profits from its UK project Royal Wharf will also be booked from 3Q16 onwards.
Meanwhile, the group is rolling out a series of new projects in its overseas portfolio, including the Peak, its second project in Cambodia, a commercial development in Dublin's CBD, Min Residences in Yangon, Oxley Convention Centre in Batam and Oxley Towers KLCC in Kuala Lumpur.
Successful take-up rates for these projects would further extend the group's profit pipeline.
We expect Oxley to report cumulative profits of $800-900m over FY16-18, with a steady stream of cash flows from completions which will help reduce the group's gearing.
The stock is one of our top picks within the sector, and we have a TP of $0.91, based on a 20% discount to its RNAV.