Oxley Holdings

seems like an ambitious move?>

ReutersSaturday, Nov 02, 2013LONDON - London's largest development site since Battersea Power Station has been sold to Singaporean developer Oxley Holdings for 200 million pounds (S$396 million), which plans to build more than 4,000 homes on the 37-acre plot of land. The deal is the latest in a string of transactions made by Asian investors in the British capital. A Malaysian consortium made up by SP Setia, Sime Darby and the Employees Provident Fund paid 400 million pounds for the 39-acre power station scheme in July 2012. The Royal Wharf riverside site in east London, which was sold by developer Ballymore, is the largest since the iconic power station was sold, according to property agents Knight Frank which advised the seller. Oxley has built luxury homes and offices in Singapore and has ongoing schemes in Cambodia and Malaysia, it said on its website. "Royal Wharf is an outstanding opportunity and offers a blank canvas to create something very special for London," the company's Chief Executive Ching Chiat Kwong said in a statement on Friday. - See more at: http://business.asiaone.com/news/singapo...poSB8.dpuf

High risk taker....high risk high return......not vested

http://infopub.sgx.com/FileOpen/Oxley1Q2...eID=264096

Oxley to me is like a mini- Far East Organiisation.......high churning.....not vested

In February 2013, Oxley transferred its listing from the Catalist to the Mainboard. Within 5 years of establishment, Oxley had become an over S$1b company. How did it achieve this, considering that there are so many long established property developers who languish below S$500m, who “can grow old but cannot grow big”? In my view, the differentiating factor is the “entrepreneur” behind the company.


http://www.nextinsight.net/index.php/sto...on-already

Their overseas expansions are too aggressive , executions may not be that smooth as that of Singapore. Investors deserved higher risk premium now.

SG SMALL-MID CAP| SPECIAL SITUATION
3 Feb 2014
ANTICIPATING EARNING SPIKES


- Oxley BizHub TOP resulted in S$251m net income in 1QFY14, up 37 times YoY
- Commercial projects attaining TOP can cause earning spikes
- Highlighting two companies with similar earning boosts ahead


For its 1QFY14 (ending Sep-13), Oxley Holdings announced a net income of S$250.8m, up a whopping 37 times YoY. This comprised mainly cash earnings, not valuation gains, and was boosted by Oxley BixHub attaining TOP, which had its profits booked wholly under the completion of contract (COC) method. We note that the full visibility of COC profits can be price catalysts for mid-small cap companies, particularly if they are not well-covered; Oxley’s share price subsequently appreciated as much as 40% after its results. In our piece, we highlight two companies likely to see COC earnings boosts ahead. First, Roxy-Pacific is likely to see an earnings boost ahead from Wis@Changi attaining TOP in its upcoming 4Q13 earnings. Similarly, we expect Lian Beng’s upcoming 3QFY14 earnings to be boosted by the TOP of M-Space, in which it has a 55% stake. Both Roxy and Lian Beng are rated BUY with fair value estimates of S$0.65 and S$0.58, respectively.

OCBC Research

Is there value in its current share price? Rather high risk.

2Q2014 results - http://infopub.sgx.com/FileOpen/Results2...eID=273828

Performance Review & Update

Oxley’s commendable 1H14 performance was primarily driven by revenue recognition,
based on the completion of construction method on its two industrial developments, the 728-
unit Oxley BizHub and the 131-unit The Commerze@Irving. Revenue was also recognised
from the progress made in the construction of 12 of the Group’s 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.
In November 2013, Oxley expanded its business horizon into Europe with its largest
purchase to date - the acquisition of adjacent parcels of land in London’s Royal Docks area,
known as the Royal Wharf. Costing £200 million in all, these sites yield an effective gross
area of approximately 363,000 square metres, which Oxley intends to develop into more
than 3,000 residential units, along with a mix of commercial, retail, leisure and educational
facilities.

In the same month, the Group entered into a joint-venture with Peninsular Teamwork Sdn.
Bhd. to develop a residential property in Selangor, Malaysia. Known as “Beverly Heights”,
the project will occupy a land area of about 61,800 square metres, and will entitle Oxley to
70% of the gross development value upon its completion.

To support its pipeline of overseas projects, Oxley established a second $500-million
Multicurrency Medium Term Note programme in November 2013. This new source of funds
will enable the Group to make inroads and establish its position beyond Singapore.

Oxley is taking too much risks to enter UK, Cambodia, Malaysia market despite having committed big projects in Singapore. If there a a slum in property market, Oxley will be in big trouble.

(08-02-2014, 09:34 AM)valueinvestor Wrote: Oxley is taking too much risks to enter UK, Cambodia, Malaysia market despite having committed big projects in Singapore. If there a a slum in property market, Oxley will be in big trouble.

why is oxley taking too much risk?
whats the gearing?
how much of a decline if the property market would trigger any sort of trouble for Oxley?

(08-02-2014, 10:48 AM)felixleong Wrote: why is oxley taking too much risk?
whats the gearing?
how much of a decline if the property market would trigger any sort of trouble for Oxley?

total assets 3bio
Equity 500mio, Liability 2.5bio of which 2bio is debt
debt/equity ratio is thus 400%

3 yr paper issued (due 2017) goes for 5.1% so certainly not the cheapest name.

investors should demand a decent return on equity for their monies if they are to buy their common stocks.

(08-02-2014, 11:27 AM)AlphaQuant Wrote:

(08-02-2014, 10:48 AM)felixleong Wrote: why is oxley taking too much risk?
whats the gearing?
how much of a decline if the property market would trigger any sort of trouble for Oxley?

total assets 3bio
Equity 500mio, Liability 2.5bio of which 2bio is debt
debt/equity ratio is thus 400%

3 yr paper issued (due 2017) goes for 5.1% so certainly not the cheapest name.

investors should demand a decent return on equity for their monies if they are to buy their common stocks.

Thanks for your answer, yeah 400% debt/equity is really high.