Oxley Holdings - RHB Invest 2015-12-02: A Time To Harvest

Oxley Holdings - RHB Invest 2015-12-02: A Time To Harvest OXLEY HOLDINGS LIMITED 5UX.SI 

Oxley Holdings (OHL SP) - A Time To Harvest 

  • Oxley has posted SGD3.3bn in total unbilled sales across its local/overseas projects that would underpin record profits over the next two years. 
  • Maintain Buy and SGD0.91 TP (117% upside) based on 20% discount to RNAV. It also build up a sizable overseas portfolio to drive the next wave of NAV growth, with planned UK, Cambodia, Ireland, Malaysia and Myanmar launches in the upcoming months. 
  • The stock is one of our property sector Top Picks. 

 Record profitability in FY16-17 underpinned by SGD3.3bn of unbilled sales. 

  • Oxley Holdings (Oxley) has executed its project pipeline well and presold SGD3.3bn worth of properties across its local and overseas projects. These would be booked over the next 2-3 years. 
  • High-yielding mixed development projects such as KAP & KAP Residences, NEWest, Midtown Residences and Oxley Tower are on track for completion in the next 12-18 months. In London, UK, Oxley is to start handing over units at Royal Wharf from mid-2016 onwards. 
  • We expect the company to gross > SGD400m in profits over FY16-17. 

 Solid progress in overseas launches. 

  • In London, Oxley has sold 2,000 units at Royal Wharf with a sales value of some GDP800m. It plans to launch the remaining 1,400 units over the next 6-9 months. 
  • With the successful take-up for its first Cambodia project, The Bridge, Oxley recently launched a second mixed development project that features > 1,000 units across two towers, offices and a Shangri-La Hotel. > 50% of the 507 residential units in Tower 1 were taken up during the initial launch. 
  • In the pipeline are planned launches in Kuala Lumpur (Malaysia), Dublin (Ireland) and Yangon (Myanmar). 

 Building up a recurring income base. 

  • Oxley is also steadily growing its recurring income base with its first hospitality project in Singapore, The Pines, which features two hotels (782 rooms) and commercial shop space. 
  • These are to come on-stream over the next two years. The company’s newly-completed industrial building, Space@Tampines, is currently ~80% leased and is likely to further bolster Oxley’s recurring income.

Goh Han Peng RHB Invest | http://www.rhbinvest.com.sg/ 2015-12-02
RHB Invest SGX Stock Analyst Report BUY Maintain BUY 0.91 Same 0.91