Oxley

Oxley: 2QFY14 net profit more than doubled to $25.1m (+121% y/y) on the back of a 238% surge in revenue to $202.2m, primarily driven by revenue recognition on its 131-unit commercial and industrial development, The Commerze@Irving. Revenue also comprised progressive recognition of 12 mixed-residential projects namely, Viva Vista, RV Point, Loft@Holland, Vibes@Kovan, Devonshire Residences, Suites@Braddell, Vibes@East Coast, The Promenade@Pelikat, Vibes@Upper Serangoon, Presto@Upper Serangoon, Oxley Edge and NEWest. The stellar results brought 1HFY14 net profit to $275.9m and revenue to $888.2m, meeting 86% and 77%, respectively, of consensus FY14 estimates. In Singapore, the group has yet to launch three mixed-residential projects, located at Oxley Rise, Joo Chiat and Ang Mo Kio Street 66. Also, it is working to develop two investment properties at Stevens Road (hospitality-cum-commercial) and Tampines Industrial Crescent (industrial). Overseas, the group has secured 15 projects to its pipeline, which comprises eight Malaysia projects, one in UK, four in Cambodia and two in China. Financial requirements for these projects has been secured from its second $500m multicurrency medium term note programme that it established in Nov '13. Group declared an interim dividend of 0.3¢/share. At current price of $0.64, Oxley trades at 3.8x P/B, below its three-year historical average of 4.1x.