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.

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.

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).

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