Wednesday, April 25, 2012
Roxy-Pacific: SIAS reinitiates coverage with an Overweight rating and TP $0.605 (post bonus issue). Says strong recent sales suggest that Roxy’s progress billings are now in excess of $750m, with the co having sold 91% of its units launched in 2012, and selling out 3 our for 4 projects, namely TREESCAPE, Millage and Natura@Hillview Phase 1. Says this confirms that the co will still be able to deliver core earnings growth from now to 2014, and has time to cherry pick new land deals. Adds, with Roxy’s hotel and portfolio of shop units valued at $0.483/sh, vs current share price of $0.43, the mkt does not seem to have incorporated the progress billings that that will be recognized as profit from now to as late as 2016.