Oxley

Oxley: 4Q13 net profit skyrocketed to $38m (+2178% y/y) compared to a $1.7m achieved in the previous corresponding period, on the back of a 640% surge in revenue to $277.3m. This brought FY13 earnings to a record $69.1m (+309%), beating street estimates by 55%, while revenue shot up 187% to $457.7m. The sterling results were attributable to revenue recognition from 12 of its ongoing property development projects: namely Oxley Bizhub 2, Arcsphere, Viva Vista, RV Point, Loft@Holland, Vibes@Kovan, Devonshire Residences, Suites@Braddell, Vibes@East Coast, The Promenade@Pelikat, Vibes@Upper Serangoon and Presto@Upper Serangoon. Full year rental income of $7.6m (+21%) was boosted from The Corporate Office (the site of the future Oxley Tower) at Robinson Road and McDonald’s Place (site of the future KAP / KAP Residences) at King Albert Park, where lease obligations were in place prior to their acquisition. Going forward, 16 of Oxley’s developments launched to date have been fully sold and the group expects progressive revenue contribution from its projects under construction to be sustained. In addition, a good number of Oxley’s sold residential developments, as well as its 728-unit industrial development, Oxley BizHub, are expected to obtain TOP in FY2014, and should thus contribute positively to the Group’s financial performance. The Group is also exploring ways to maximize plot potential of its Malaysian and Cambodian land parcels, while monitoring the Singapore market closely for an opportune time to launch its five remaining pipeline projects located at Oxley Rise, Joo Chiat, Stevens Road, Cactus Road and Tampines Industrial Crescent. NAV jumped 56% to 8.1¢; P/B of 4.3x Final dividend of 0.6¢ compared to 0.47¢ in FY12; implied yield of 1.7%