OXLEY: "Maintain buy and 91-c target price," says RHB

NEWS: Oxley Holdings announced that it has entered into a hotel management contract with Shangri-La Asia for its mixed development site at Phnom Penh, which has a hotel component.

Oxley intends to develop a five-star international luxury hotel, consisting of about 300 guest rooms and suites, on the site at Village No. 14, Sam Dach Hun Sen Road, Sangkat Tonle Bassac, Khan Chamkamorn Phnom Penh, Cambodia.

      

COMMENT: Since it went on an overseas expansion spree two years ago, Oxley has made good progress in its overseas projects rollout. Following the recent launch of Royal Wharf phase 2, 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 mid-2015. The success of these projects will extend its earnings visibility to 2020.

We continue to like the stock for its dynamic management and good earnings visibility. Maintain BUY and TP of SGD0.91 based on 20% discount to its RNAV.