Oxley Holdings

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Seems theres a big legal case going on.

After being in negative spotlight for months now over its huge debt overhang, the property firm’s possible path towards financial stability seems to have dimmed again following recent developments in Cambodia and the novel coronavirus (Covid-19) outbreak.

Following a brief uptick in early 2019 with the sale of Chevron’s House in Singapore, the firm’s poor cashflow continued to be in investors’ spotlight – until its ongoing project in Cambodia managed to woo China Railway Urban Construction Group Co Ltd (CRUCG) as a new contractor, together with the promise of financial support – announced late last year.

But recent events have cast serious doubt over the CRUCG partnership – which having to cope with the economic fallout from the Covid-19 virus spread in its mainland China home market, other legal troubles stand in the way of CRUCG’s pairing with Oxley.

Trouble apparently began with Oxley hiring CRUCG to replace previous contractor Sino Great Wall International Engineering Co Ltd (SGW) for its Cambodia project – as SGW said in a statement today the termination process was faulty.

SGW said Oxley terminated the four-year contract barely three months before SGW was due to complete Oxley’s flagship The Peak project in Cambodia’s capital city Phnom Penh.

The termination seemed to have stemmed from Oxley’s consultant advising work on The Peak project was about nine months behind schedule; an assertion denied by SGW’s Cambodia branch office legal representative Zhu Gen Sheng.

“Due to the usual variations, because of challenges found only once work starts on-site and also delays by the consultant to certify milestones, we estimated the possible delay being around three months.

“Having begun work on The Peak project in February 2016 and eventually expected to finish in April 2020, or three months behind schedule, we were very surprised when the termination took effect on 14 October 2019.”

Zhu said the flimsy excuse given by Oxley for the termination was linked to financial issues being faced back in China by SGW’s parent company Sino Great Wall Co Ltd.

“We had already reached 70% certified completion by early October 2019, with over 1,000 workers on-site doing extra shifts. Most necessary construction materials and fittings had already arrived and ready to be installed. So how does our parent company’s financial situation in China have any impact on this project in Cambodia?”

Zhu also said Oxley further delayed due payments and then tried to rush SGW off the construction site.

“We continued to be professional and attended to defect issues, raised even after the termination notice, because we take pride in always delivering our best to our clients.

“But Oxley then filed for a court injunction, which was forcibly enforced last week on Feb 25. This resulted in several of our workers being injured and some lost their valuables too.”

With due payments still owing and having been forcibly evicted, SGW is now taking necessary legal action to protect its interests at The Peak project site. All these developments are being watched closely by CRUCG, said Zhu.

“If this is how Oxley treats its partner from China, the same could happen to them too.”

Zhu added that SGW had also given its full support to Oxley for years, especially when the Singapore developer came under heavy scrutiny last year for its huge debt burden of almost S$3 billion while its income was far less.

“We were originally contracted to do construction on three key projects, namely The Bridge, The Palms and The Peak.

“We started work on The Bridge in August 2014 and completed the project in March 2018, about four (4) months behind schedule, even though Oxley originally claimed we were delayed by over seven months.

“For The Palms, construction work started in March 2018. But Oxley later renegotiated with us due to financial constraints. So we stopped work there in January 2019 to focus on The Peak, as requested by Oxley.

“Construction at The Peak started in February 2016 and due for completion by end-January 2020. We stayed on because we believed it was only right to continue supporting our client despite reports of their debt problems and even though payments got delayed.

“We’re still not sure why Oxley has treated us so badly after all our support for them. We got our final payments for The Bridge and The Palms only 18 months and 10 months later and now, we have to take necessary legal action to make sure we get paid for what we’re still owed for work on the Peak.”

Source: https://www.cyber-rt.info/business/singa...g-lawsuit/
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Seems theres a big legal case going on.

After being in negative spotlight for months now over its huge debt overhang, the property firm’s possible path towards financial stability seems to have dimmed again following recent developments in Cambodia and the novel coronavirus (Covid-19) outbreak.

Following a brief uptick in early 2019 with the sale of Chevron’s House in Singapore, the firm’s poor cashflow continued to be in investors’ spotlight – until its ongoing project in Cambodia managed to woo China Railway Urban Construction Group Co Ltd (CRUCG) as a new contractor, together with the promise of financial support – announced late last year.

But recent events have cast serious doubt over the CRUCG partnership – which having to cope with the economic fallout from the Covid-19 virus spread in its mainland China home market, other legal troubles stand in the way of CRUCG’s pairing with Oxley.

Trouble apparently began with Oxley hiring CRUCG to replace previous contractor Sino Great Wall International Engineering Co Ltd (SGW) for its Cambodia project – as SGW said in a statement today the termination process was faulty.

SGW said Oxley terminated the four-year contract barely three months before SGW was due to complete Oxley’s flagship The Peak project in Cambodia’s capital city Phnom Penh.

The termination seemed to have stemmed from Oxley’s consultant advising work on The Peak project was about nine months behind schedule; an assertion denied by SGW’s Cambodia branch office legal representative Zhu Gen Sheng.

“Due to the usual variations, because of challenges found only once work starts on-site and also delays by the consultant to certify milestones, we estimated the possible delay being around three months.

“Having begun work on The Peak project in February 2016 and eventually expected to finish in April 2020, or three months behind schedule, we were very surprised when the termination took effect on 14 October 2019.”

Zhu said the flimsy excuse given by Oxley for the termination was linked to financial issues being faced back in China by SGW’s parent company Sino Great Wall Co Ltd.

“We had already reached 70% certified completion by early October 2019, with over 1,000 workers on-site doing extra shifts. Most necessary construction materials and fittings had already arrived and ready to be installed. So how does our parent company’s financial situation in China have any impact on this project in Cambodia?”

Zhu also said Oxley further delayed due payments and then tried to rush SGW off the construction site.

“We continued to be professional and attended to defect issues, raised even after the termination notice, because we take pride in always delivering our best to our clients.

“But Oxley then filed for a court injunction, which was forcibly enforced last week on Feb 25. This resulted in several of our workers being injured and some lost their valuables too.”

With due payments still owing and having been forcibly evicted, SGW is now taking necessary legal action to protect its interests at The Peak project site. All these developments are being watched closely by CRUCG, said Zhu.

“If this is how Oxley treats its partner from China, the same could happen to them too.”

Zhu added that SGW had also given its full support to Oxley for years, especially when the Singapore developer came under heavy scrutiny last year for its huge debt burden of almost S$3 billion while its income was far less.

“We were originally contracted to do construction on three key projects, namely The Bridge, The Palms and The Peak.

“We started work on The Bridge in August 2014 and completed the project in March 2018, about four (4) months behind schedule, even though Oxley originally claimed we were delayed by over seven months.

“For The Palms, construction work started in March 2018. But Oxley later renegotiated with us due to financial constraints. So we stopped work there in January 2019 to focus on The Peak, as requested by Oxley.

“Construction at The Peak started in February 2016 and due for completion by end-January 2020. We stayed on because we believed it was only right to continue supporting our client despite reports of their debt problems and even though payments got delayed.

“We’re still not sure why Oxley has treated us so badly after all our support for them. We got our final payments for The Bridge and The Palms only 18 months and 10 months later and now, we have to take necessary legal action to make sure we get paid for what we’re still owed for work on the Peak.”

Source: https://www.cyber-rt.info/business/singa...g-lawsuit/
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Sob story from Sino Great Wall about being "ill-treated" by Oxley?

Ching was smart enough to terminate Sino Great Wall or else Oxley Peak project will be further delayed. A shrewd move indeed...

Not sure if Sino Great Wall has the financial resources to go into a long-drawn legal suit with Oxley when it has so many creditors hot on its heels.



***********

A Chinese firm involved in a planned US$2.5 billion redevelopment of Yangon Central Railway Station appears on the brink of collapse, with creditors launching legal action to recover loans made to the company.

https://frontiermyanmar.net/en/sino-grea...t-and-road
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
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Sob story from Sino Great Wall about being "ill-treated" by Oxley?

Ching was smart enough to terminate Sino Great Wall or else Oxley Peak project will be further delayed. A shrewd move indeed...

Not sure if Sino Great Wall has the financial resources to go into a long-drawn legal suit with Oxley when it has so many creditors hot on its heels.



***********

A Chinese firm involved in a planned US$2.5 billion redevelopment of Yangon Central Railway Station appears on the brink of collapse, with creditors launching legal action to recover loans made to the company.

https://frontiermyanmar.net/en/sino-grea...t-and-road
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
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Given Oxley's high leverage , i am guessing that it is going to be the first property developer in singapore to do a right issue soon
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Given Oxley's high leverage , i am guessing that it is going to be the first property developer in singapore to do a right issue soon
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Most of its properties are sold out or largely sold out. Cash flow coming in and this is highly visible .

U can either visit the showroom and check with agents or look at Oxley recent corporate presentation .

The High gearing is understandable because of the nature of property development .

Let me give one simple analogy . A young couple takes a 80% loan and pays 20% equity. The gearing ratio is 4.

If most of the projects are already sold out , cash flow are flowing in . Upon TOP, more cash flow will flow in .


Sent from my iPhone using Tapatalk Pro
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
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Most of its properties are sold out or largely sold out. Cash flow coming in and this is highly visible .

U can either visit the showroom and check with agents or look at Oxley recent corporate presentation .

The High gearing is understandable because of the nature of property development .

Let me give one simple analogy . A young couple takes a 80% loan and pays 20% equity. The gearing ratio is 4.

If most of the projects are already sold out , cash flow are flowing in . Upon TOP, more cash flow will flow in .


Sent from my iPhone using Tapatalk Pro
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
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Among the conditions for completion of the deal struck between the two parties on 29 April is that Oxley must complete a $100 million refurbishment of the skyscraper formerly known as Chevron House and find a buyer for the building podium.

https://www.mingtiandi.com/real-estate/f...for-s475m/

Not sure if Oxley can fully close the deal on the Chevron House if it cannot buy a buyer for the building podium?
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
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Among the conditions for completion of the deal struck between the two parties on 29 April is that Oxley must complete a $100 million refurbishment of the skyscraper formerly known as Chevron House and find a buyer for the building podium.

https://www.mingtiandi.com/real-estate/f...for-s475m/

Not sure if Oxley can fully close the deal on the Chevron House if it cannot buy a buyer for the building podium?
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
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(23-03-2020, 02:01 PM)Curiousparty Wrote: Most of its properties are sold out or largely sold out. Cash flow coming in and this is highly visible .

U can either visit the showroom and check with agents or look at Oxley recent corporate presentation .

The High gearing is understandable because of the nature of property development .

Let me give one simple analogy . A young couple takes a 80% loan and pays 20% equity. The gearing ratio is 4.

If most of the projects are already sold out , cash flow are flowing in . Upon TOP, more cash flow will flow in .


Sent from my iPhone using Tapatalk Pro

Everything should be good when the sky is clear and sunny and cash keep flowing. The only problem is when sales and/or construction slowed. What Oxley is trying to do is to turn their projects fast with low gross margin ( way lower than other developers). If the projects stop turning...……..

Base on latest presentation, local projects 58% sold, overseas launched projects 49% sold and another 8,351 GDV yet to launch(overseas). Doesn't look like largely sold out. 

Look at interest coverage, using operating cashflow before changes in working capital (ok give Oxley a break rather than use the lousy cashflow after working capital and also this reflect Oxley earnings), 1HFY20 is about 1X. FY19 about 0.5X and FY18 about 1X. 

Basically excluding associates and JV(which are also highly leverage), Oxley operating earnings in the past 2.5 years was unable to meet the interest payments. shortfall is mainly make up by taking on more debts, and sell assets, sell shares etc.

I call this an accident waiting to happen.
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(23-03-2020, 02:01 PM)Curiousparty Wrote: Most of its properties are sold out or largely sold out. Cash flow coming in and this is highly visible .

U can either visit the showroom and check with agents or look at Oxley recent corporate presentation .

The High gearing is understandable because of the nature of property development .

Let me give one simple analogy . A young couple takes a 80% loan and pays 20% equity. The gearing ratio is 4.

If most of the projects are already sold out , cash flow are flowing in . Upon TOP, more cash flow will flow in .


Sent from my iPhone using Tapatalk Pro

Everything should be good when the sky is clear and sunny and cash keep flowing. The only problem is when sales and/or construction slowed. What Oxley is trying to do is to turn their projects fast with low gross margin ( way lower than other developers). If the projects stop turning...……..

Base on latest presentation, local projects 58% sold, overseas launched projects 49% sold and another 8,351 GDV yet to launch(overseas). Doesn't look like largely sold out. 

Look at interest coverage, using operating cashflow before changes in working capital (ok give Oxley a break rather than use the lousy cashflow after working capital and also this reflect Oxley earnings), 1HFY20 is about 1X. FY19 about 0.5X and FY18 about 1X. 

Basically excluding associates and JV(which are also highly leverage), Oxley operating earnings in the past 2.5 years was unable to meet the interest payments. shortfall is mainly make up by taking on more debts, and sell assets, sell shares etc.

I call this an accident waiting to happen.
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https://research.sginvestors.io/2020/03/...7.html?m=1

Which part is inaccurate ?


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[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
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https://research.sginvestors.io/2020/03/...7.html?m=1

Which part is inaccurate ?


Sent from my iPhone using Tapatalk Pro
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
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But I can see the company doing a lot of share buyback and director buying alot of share in the open market. If oxley going to collapse, it is unlikely that the director are buying so much share right?
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But I can see the company doing a lot of share buyback and director buying alot of share in the open market. If oxley going to collapse, it is unlikely that the director are buying so much share right?
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https://www.theedgesingapore.com/capital...year-oxley

Will FY20 be a 'record year' for Oxley?
Stanislaus Jude Chan 24/09/2019, 11:58am

SINGAPORE (Sept 24): Oxley Holdings might have seen its full year earnings nearly halved year-on-year to $146.3 million for FY19. But some market watchers believe the property group is poised for a stellar year ahead.

“FY20 should be a record year, with profits from the Chevron House sale, Dublin landing and Cambodia coming in,” says RHB Group Research lead analyst Jarick Seet in a Tuesday report.

In addition, the analyst notes that Oxley has hinted that it may pay a special dividend for its 10-year anniversary.

“Management guided that excess cash – after paring down gearing – will be used to reward shareholders with special dividends, if there are no suitable opportunities at that time,” Seet says. He estimates this special dividends to be around 3 cents per share.

Oxley has been slowly paring down its debt, which currently amounts to some $2.18 billion expiring by 2020.

Seet notes that the majority of Oxley’s debt comprise property loans, which “can easily be refinanced”. “Only SG$450 million of its retail bond need to be paid by 2020,” he adds.

The $1.03 billion sale of Chevron House saw the group pocket $210 million, while it also has some €358.6 million ($543.2 million) coming in 2020 from the Dublin project as well as another US$204 million from its development in Cambodia.

“Gearing has been lowered to 2.05 from 2.17, and should be significantly lowered further in FY20F,” Seet says.

He also points out that Oxley still has some $2.7 billion worth of locally-sold residential units set to be booked into its coffers, and another more than $900 million from the potential value-unlocking of the Stevens Road hotels.

Oxley saw its earnings fall to $146.3 million for FY19, just over half of FY18 earnings of $285.0 million.

In the 4Q19 ended June, earnings plunged 81% to $25.6 million, as revenue fell 57% to $100.4 million on lower revenue contribution from its project in the United Kingdom.

“The counter is trading at a deep 58% discount to our RNAV of 74 cents. We believe that this is an attractive price level – close to its 5-year low – as investor sentiment was impacted by property sector cooling measures, as well as the misconception over its ability to repay debts,” Seet explains.

RHB is keeping its “buy” call on Oxley and raising its target price by 4.9% to 43 cents. This implies an upside of 41% and a dividend yield of 9.8% for FY20F.

As at 11.56am on Tuesday, shares in Oxley are trading half a cent higher, or up 1.6%, at 31 cents.
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
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https://www.theedgesingapore.com/capital...year-oxley

Will FY20 be a 'record year' for Oxley?
Stanislaus Jude Chan 24/09/2019, 11:58am

SINGAPORE (Sept 24): Oxley Holdings might have seen its full year earnings nearly halved year-on-year to $146.3 million for FY19. But some market watchers believe the property group is poised for a stellar year ahead.

“FY20 should be a record year, with profits from the Chevron House sale, Dublin landing and Cambodia coming in,” says RHB Group Research lead analyst Jarick Seet in a Tuesday report.

In addition, the analyst notes that Oxley has hinted that it may pay a special dividend for its 10-year anniversary.

“Management guided that excess cash – after paring down gearing – will be used to reward shareholders with special dividends, if there are no suitable opportunities at that time,” Seet says. He estimates this special dividends to be around 3 cents per share.

Oxley has been slowly paring down its debt, which currently amounts to some $2.18 billion expiring by 2020.

Seet notes that the majority of Oxley’s debt comprise property loans, which “can easily be refinanced”. “Only SG$450 million of its retail bond need to be paid by 2020,” he adds.

The $1.03 billion sale of Chevron House saw the group pocket $210 million, while it also has some €358.6 million ($543.2 million) coming in 2020 from the Dublin project as well as another US$204 million from its development in Cambodia.

“Gearing has been lowered to 2.05 from 2.17, and should be significantly lowered further in FY20F,” Seet says.

He also points out that Oxley still has some $2.7 billion worth of locally-sold residential units set to be booked into its coffers, and another more than $900 million from the potential value-unlocking of the Stevens Road hotels.

Oxley saw its earnings fall to $146.3 million for FY19, just over half of FY18 earnings of $285.0 million.

In the 4Q19 ended June, earnings plunged 81% to $25.6 million, as revenue fell 57% to $100.4 million on lower revenue contribution from its project in the United Kingdom.

“The counter is trading at a deep 58% discount to our RNAV of 74 cents. We believe that this is an attractive price level – close to its 5-year low – as investor sentiment was impacted by property sector cooling measures, as well as the misconception over its ability to repay debts,” Seet explains.

RHB is keeping its “buy” call on Oxley and raising its target price by 4.9% to 43 cents. This implies an upside of 41% and a dividend yield of 9.8% for FY20F.

As at 11.56am on Tuesday, shares in Oxley are trading half a cent higher, or up 1.6%, at 31 cents.
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
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https://research.sginvestors.io/2020/02/...02-12.html

Maintain BUY, new SGD0.42 TP from SGD0.43, 24% upside with c.9% FY20F (Jun) yield.

Oxley’s sales softened in 2QFY20, mainly due to the lumpy recognition of projects, higher consultancy fees incurred for overseas developments, the inclusion of 3-month expenses from the new Australian subsidiary, and higher finance costs. We still expect it to record a solid performance in FY20, on catalysts like closing the Chevron House sale, while it may fork out a special dividend as well. 
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
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https://research.sginvestors.io/2020/02/...02-12.html

Maintain BUY, new SGD0.42 TP from SGD0.43, 24% upside with c.9% FY20F (Jun) yield.

Oxley’s sales softened in 2QFY20, mainly due to the lumpy recognition of projects, higher consultancy fees incurred for overseas developments, the inclusion of 3-month expenses from the new Australian subsidiary, and higher finance costs. We still expect it to record a solid performance in FY20, on catalysts like closing the Chevron House sale, while it may fork out a special dividend as well. 
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
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