Oxley Holdings (OHL SP)
Back For The Home Run
Oxley is a key beneficiary of Singapore property upcycle, as it has the largest residential landbank among the Singapore-listed property stocks with 1,209 attributable units (Total: 2,833 units, Total: S$3.03b GDV). Its diversified earnings base with S$2.46b in secured sales provides earnings visibility. Gearing concerns will subside with cash flow streaming in and rising recurring income stream (from S$11.3m in 2017 to S$167.1m in 2021). We re-initiate coverage on Oxley with a BUY rating and target price of S$0.67, pegged at a 20% discount to its RNAV.
Property Devt & Invt
Uptick in private residential prices
■ First private residential price uptick in over 3 years, supported by improved volume.
■ Declining completions over next 2-3 years to support a sustained price recovery.
■ Stay Overweight; top picks – UOL, City Dev, Capitaland, Wing Tai.
Singapore Monthly Strategy
STI 3400 Decision Time
• 3Q17 results season a key determining factor for STI 3400 by year-end
• Stocks to position ahead of results – OCBC, Genting Singapore, iFAST, Hi-P , Sunningdale and Thai Bev
• SREITs checked by risk free rate rebound – Mapletree Greater China Commercial Trust, Far East Hospitality Trust, Keppel REIT, Capitaland Retail China Trust
|♦ Re-rating of tech stocks continues; Technology best performing sector in the Singapore market|
Check out our compilation of Target Prices