Rowsley

Rowsley: 9MFY14 net loss deteriorated to $226.3m (from $5.9m), on revenue of $22.5m (from $0.2m), mainly due to a $221.2m impairment loss from the purchase of RSP Architects Planners & Engineers (RSP). Otherwise, Rowsley announced a net loss of $5m. While RSP met its profit target of $25m for 2013, Rowsley's bottomline was marred by professional fees incurred for RSP ($4.4m) and the vacant land in Iskandar, as well as higher project expenses ($5.7m), partially mitigated by FX gain ($2.1m) and wages reimbursement ($2.9m). Rowsley's other substantial acquisition, a 9.23 hectare land in Iskandar to be developed into an integrated wellness and lifestyle hub called Vantage Bay, is expected to draw strong demand upon its launch, although the group did not release any indicative timelines. Market observers hypothesize a launch for the first phase of Vantage Bay to be in Apr'14. The group has no debt on its balance sheet, as it continues to look out for more investment opportunities in the region. At the last closing price of $0.29, Rowsley trades at 2.7x P/B.