THE RESIDENTIAL property market may be facing tough Government measures aimed at reining in prices, but shares of Roxy-Pacific Holdings have made a steady climb from 28.5 cents in early July to touch 39 cents yesterday on a strong volume of 3.4 million shares..
That’s the highest closing price since Roxy’s IPO at 30 cents in 1Q2008.
In recent weeks, its chairman and CEO, Teo Hong Lim, has made significant purchases of the stock, personally and via investment holding company Kian Lam Investment (see table).
An independent director, Tay Kah Poh, has also been buying the shares. He once was an Executive Director, Consultancy and Research at Knight Frank Pte Ltd, Singapore for 12 years.
Such insider buying has been strong in various quarters in the past, which was not surprising given the brisk sales of Roxy’s development projects.
Roxy, which will report its 3Q results soon, has $227.5 million of revenue to be recognised from 3Q10 until FY2012 from the development projects which it has already launched.
Roxy’s first-half earnings stood at a record $21.9 million, placing it on track for another record year - and its stock has finally done some catching up with the market, a move we thought was a long time coming in an August article (see link below).
Despite the run-up in recent weeks, it is still trading at a big discount to its Revalued Net Asset Value (RNAV) of 57.03 cents a share (as at end June).
Chances are, the RNAV to be reported for end-Sept would be higher.
On a PE basis, the stock trades at 5.7X based on annualized earnings per share of 6.88 cents for this year.
Recent story: ROXY-PACIFIC: Another record profit - stock price to catch up?
