Oxley Holdings

Oxley@23

PROPOSED SALE OF AN OVERSEAS ASSET IN THE ORDINARY COURSE OF BUSINESS
Under the Contract, the Property will be sold at the price of approximately S$100 million (the “Sale Price”).

Based on the audited financial statements of the Group for the financial year ended 30 June 2020, the Property had a book value of approximately S$60 million as at 30 June 2020.
The Sale, if completed by 30 June 2022, is expected to have a material impact on the expected earnings per share of the Company for the financial year ending 30 June 2022.
https://links.sgx.com/FileOpen/Annc%20-%...eID=672979

Stay home and stay safe, everyone.

Glimpse of Hyflux

Just be careful

Oxley reports earnings of $3.2 million for the FY2022, down 75% y-o-y
https://www.theedgesingapore.com/capital...n-75-y-o-y

https://links.sgx.com/FileOpen/Profit%20...eID=769998

Despite strong sales from the local Singapore market that it has to recognise, I am surprised that Oxley is going to report losses.

For context, they have about 600 million in revenue to be recognised from Singapore as the properties will TOP. This is higher than 1H2023 which reported SGD$438 million revenue and 2 million profit. It looks like the finance cost of its overseas project and slow sales overseas is hurting the company. Its foray into overseas project is now starting to kill it, with failed overseas residential projects one after another.

I wonder given its limited land bank in Singapore and poor execution overseas, should the company go in the footsteps of closing itself down. Of course, the incomptent CEO will be the first to object as he will lose his job but wont it be the best for shareholders as the company equity will be dwindled down by him

<not vested>

Leverage(debts) works both ways.....it can either helps you earn a lot of money or vice versa.

With the rise in interest rates, refinancing of loans will cost a lot lot more...

(24-08-2023, 02:50 PM)CY09 Wrote: https://links.sgx.com/FileOpen/Profit%20...eID=769998

Despite strong sales from the local Singapore market that it has to recognise, I am surprised that Oxley is going to report losses.

For context, they have about 600 million in revenue to be recognised from Singapore as the properties will TOP. This is higher than 1H2023 which reported SGD$438 million revenue and 2 million profit. It looks like the finance cost of its overseas project and slow sales overseas is hurting the company. Its foray into overseas project is now starting to kill it, with failed overseas residential projects one after another.

I wonder given its limited land bank in Singapore and poor execution overseas, should the company go in the footsteps of closing itself down. Of course, the incomptent CEO will be the first to object as he will lose his job but wont it be the best for shareholders as the company equity will be dwindled down by him

<not vested>

About 6 years back. Oxley was shouting it had 2.6B of unrecognised sales. About 3 years ago  Oxley was shouting on its 2.4B unrecognised sales. Now 0.6B unrecognised sales. 

What important is the ability to convert that to the bottom line without leakage and Oxley is just unable to do it. 

Huge debts powered Oxley to frame. And it try to and almost managed to deleverage in an orderly manner. For China property monsters to do an Oxley will not be easy especially when reputation is gone among home buyers because once they are unable to sell units. They are gone. No amount of fund raising will save them when their equity fund 20 to 30% percent of total assets and when they are trading at low P/B. 

A fund raising that double number of outstanding shares for a company trading at 0.2BV with equity funding 20% of total assets mean raising $4 for every $100 assets its own. 

Reputation is everything for these property monsters. And their issued debts might be the place to be.

Oxley is facing the same problem as China developers (albeit of a smaller magnitude)

Its decision to venture overseas and validated by its initial success (not because of their own capabilities but by easy money and low interest rates) resulted in Oxley land banking large amount of overseas land. The tide receded and Oxley is now left with $750 million in unsold developments in UK, Malaysia and Cambodia and a billion dollar piece of land to develop in Ireland where real estate is declining. This on the back of a billion dollar loan

As said the key is now to convert these unsold properties to revenue but it will be hard when global interest rates are high. In a sense, what propelled Oxley to fame was due to 1) Lax housing sales regulation by Singapore where shoe box was allowed and (2) easy monetary policy globally and Singapore. Once all these policies were fixed, the poor execution ability of Oxley management was revealed. In difficult times, they do not shine

Small scale developer who rode the wave and decided not to over pursue overseas project: KSH Holdings

Hi CY09,

KSH Holdings do pursue overseas project. An example being Gaobeidian township project in China. I think Sing Holdings might be a better example, as they have stick to Singapore development projects.

$619m of future progressive billings over the next 3 years....

Total debts of $1.643b. They probably will need to refinance it at a higher cost when it is due.

(03-09-2023, 03:57 PM)Behappyalways Wrote: $619m of future progressive billings over the next 3 years....

Total debts of $1.643b. They probably will need to refinance it at a higher cost when it is due.

Yes at higher cost for fixed rate loan. Loan that float should already be at the current rate. 

It also depend on the purpose of the loan. Project level. Ie. Per development. For investment property or hotel or general working capital type. 

Oxley has been selling their units with little completed but unsold units over the years so I would think that it is reasonable to assume that it can continue to sell unsold units and that is close to 1B. Then there are like 0.3B of cash and receivables less payable which should be reasonable at face value. And then there are investment property and hotel which far exceed the loans.

All in it is not unreasonable to think Oxley might need to do some fundraising but I think that will be it. The main point is Oxley won't stop taking on new development. How they do it or spin the story will be the key. Or dispose its hotel.

The company got a tax write back if not losses would be higher...

Company expects to collect more than $300m in the next few years for the properties sold while more than$1 b debts will be due this year....


Oxley Holdings posts H1 loss of S$1.1 million on lower revenue, offset by lower finance costs, tower sale
https://www.businesstimes.com.sg/compani...ance-costs

https://links.sgx.com/1.0.0/corporate-an...67b8bac4ca