Rowsley

Rowsley: Share price took a beating yesterday (-4% to $0.25) and has been trending down the past week, as investors get impatient on the progress of the group's Vantage Bay development in Iskandar and the lack of updates provided by management. This comes amidst growing murmurs on worries of a potential supply glut situation in Iskandar during a period filled with several mammoth projects, with units at attractive price points, by Chinese developers, as well as the upcoming development by Dubai-based Emaar Group expected by Dec this year. The most imminent one would be the VVIP launch for Princess Cove by HK-listed Guangzhou R&F Properties this Saturday, a mixed development with the potential for up to 30,000 residential units and located just adjacent to the new Johor customs checkpoint. According to Rowsley's management, the group intends to remain by the sidelines before obtaining their advertising permit & development licence from the Malaysian government, before units at the project can officially lodge the sales and purchase agreement with end-users. The group intends to keep a close eye on demand sentiments from the upcoming launches by its competitors, and do not wish to compete head-on against. In addition, management does not rule out riding out any potential down-cycle before embarking on the launch. Essentially, any actions that the company may take would come closer to the fourth quarter this year, that's if demand sentiments stay strong till then. At $0.25, Rowsley trades at 2.3x P/B.