Oxley Bizhub boosts Oxley’s 1Q15 profits with add’l $250m

The firm has become even more aggressive overseas.

Oxley is a present favorite among for its dynamic management and good earnings visibility.

Oxley Holdings (OHL SP) reported 1QFY15 net profit of SGD19.6m (-92% y-o-y) due to a high base in the year ago period, which was boosted by the completion of Oxley Bizhub, a highly profitable industrial project which grossed over SGD250m in profits.

During the quarter, the group recognised contribution from its 13 Singapore projects, which are substantially-sold and expected to deliver over SGD700m of pretax-profit in the course of the next 2 years. Robinson Square is slated for completion next quarter, while further construction progress for its high-yielding, mixed development projects such as KAP, Oxley Tower, Midtown and NEWest will underpin our SGD112m FY15 forecast.

In overseas markets, the group continues to make progress in its rollout of its projects. Following the recent launch of Royal Wharf Phase 2 (London), the group has sold over 1400 units in the 3,300-unit development. In Cambodia, the group has sold more than half of the residential/soho units in The Bridge. The next major launch is the KLCC project in early 2015, after legal completion of the land purchase in Jan 2015. 

Construction is proceeding apace for the group’s hotel-cum-commercial development at the PINES. On completion in 2016, the group will have a steady stream of recurring income. The group recently completed a SGD40m of a commercial development in Chiba Prefecture, Japan, at a fraction of its historical cost, which will add to its recurring income stream.