Oxley

Oxley - no co. specific news today, although OCBC recently note in a report that in its 1QFY14 (ending Sep-13), Oxley Holdings announced a net income of S$250.8m, up a whopping 37 times YoY. This comprised mainly cash earnings, not valuation gains, and was boosted by Oxley BixHub attaining TOP, which had its profits booked wholly under the completion of contract (COC) method. Note that the full visibility of COC profits can be price catalysts for mid-small cap companies, particularly if they are not well-covered; Oxley’s share price subsequently appreciated as much as 40% after its results. IHouse highlight two companies likely to see COC earnings boosts ahead. First, Roxy-Pacific is likely to see an earnings boost ahead from Wiz@Changi attaining TOP in its upcoming 4Q13 earnings. Similarly, expect Lian Beng’s upcoming 3QFY14 earnings to be boosted by the TOP of M-Space, in which it has a 55% stake.