Roxy-Pacific's profits jumped 10% to $19.5m

But here's why 2H may be even better.

According to OCBC Investment Research, Roxy-Pacific's 2Q13 PATMI is S$19.5m (EPS: 2.05 S- cents) which increased 10% YoY due to higher
property development profits. 2Q13 revenues  also increased 31% to S$68.9m, driven by a  S$17.1m increase in the development  topline.

Here's more:

1H13 PATMI now cumulates to S$31.2m, forming 40% of our full year forecast. We judge this to be within expectations; earnings are likely to be backloaded in FY13, particularly with an anticipated one-time boost from Wis@Changi upon its TOP in 2H13.

The group now sits on a whopping S$1.1b of yet unrecognized revenues from sold units – this is equivalent to 8 times FY12 property revenues and would underpin a rigorous earnings growth profile ahead in our view. Interim dividend is S$0.77 S-cents.

LIV on Sophia, Whitehaven and Jade Residences – all of them launched in 1H13 - are 100%, 76% and 60% sold as at 24 Jul 2013. LIV on Wilkie would likely be launched in 3Q13 and we expect it to perform well due to its proximity to LIV on Sophia (now soldout).

Note that, of the group’s 15 working projects which has been launched, 12 are fully sold with the exception of Eon Shenton (office 97% sold, residential 93%), Whitehaven (76% sold) and Jade Residences (60% sold).

Roxy continues to seek landbank prudently and recently bought a 699k sq ft freehold site in Kuala Lumpur beside the upcoming Quill City. As anticipated, RevPar at Grand Roxy Mercure dipped 9% YoY to S$164.4 mainly due to ongoing enhancements which lowered the average occupany rate by 6.9 ppt YoY to 83.8%.