Roxy-Pacific Holdings - OCBC Investment 2016-08-26: Open market purchases by management

Roxy-Pacific Holdings: - OCBC Investment 2016-08-26: Open market purchases by management ROXY-PACIFIC HOLDINGS LIMITED E8Z.SI

Roxy-Pacific Holdings: - Open market purchases by management

  • We note that management continues to purchase from the open market Roxy-Pacific shares, which trade with limited liquidity. 
  • Yesterday, it was reported that the group’s CEO, Mr Teo Hong Lim, had purchased through his investment vehicle, Kian Lam Investments Pte Ltd, some 35k shares while the share price traded at a wide intra-day range of S$0.39 and S$0.47. Mr Teo had also entered the open market twice over the last two months, purchasing some 152k shares at an average price of S$0.46. 
  • To recap, Roxy-Pacific reported earlier in the month that its 2Q16 PATMI increased 57% YoY to S$20.6m mostly due to fair value gains on its Australian assets, higher contributions from its development segment and stronger share of associates and JV profits from Eon Shenton. 
  • The group currently sits on total pre-sale revenues of S$363.3m which will be progressively recognized from 3Q16 to 2020. 
  • Maintain HOLD with an unchanged fair value estimate of S$0.52 per share.

Eli Lee OCBC Investment | http://www.ocbcresearch.com/ 2016-08-26
OCBC Investment SGX Stock Analyst Report HOLD Maintain HOLD 0.520 Same 0.520