Posts Tagged ‘Roxy-Pacific’

Roxy-Pacific: Insiders buying

In Property on 07/03/2012 at 5:38 am

I’ve kept an eye on Roxy-Pacific since at least last March. It trades at a huge discount to RNAV, presumably because of its massive debts. I’ve concerns that it may not be able to refinance its debts if we have a repeat of the 2008 crisis.

Well, the executive chairman and an executive director were buying recently¬†according to this BT report on Monday: Executive chairman of the board and CEO Teo Hong Lim and executive director Koh Seng Geok acquired shares of residential property developer Roxy-Pacific Holdings in the second half of February with a combined 1.849 million shares purchased from Feb 20 to 29 at an average of 45.5 cents each. The acquisitions, which accounted for 21 per cent of the stock’s trading volume, were made after the stock rose by 17 per cent from 39 cents on Jan 20.

The purchases were also made after Roxy-Pacific Holdings announced on Feb 16 a 5 per cent drop in Q4 profit after tax to $11.40 million for the three months to Dec 31, 2011. Earnings for the full year, however, rose by 16 per cent to $49.65 million. Chairman Teo Hong Lim picked up 1.399 million shares from Feb 20 to 22 and a further 380,000 shares on Feb 29 at an average of 45.5 cents each, which increased his holdings (direct and deemed) to 366.512 million shares or 57.57 per cent. He previously acquired 2.5 million shares on Jan 12 via a married deal at 40 cents each and 1.528 million shares from May 9 to Aug 22, 2011, at an average of 46 cents each.

Executive director Koh Seng Geok, on the other hand, bought 70,000 shares on Feb 21 at 45 cents each, which boosted his direct holdings to 4.398 million shares or 0.69 per cent. He previously acquired 40,000 shares from September to October 2011 at an average of 39.3 cents each and 100,000 shares in February 2011 at an average of 44.5 cents each. The counter closed at 47.5 cents on Friday

Roxy-Pacific: Decent discount to RNAV even after 25% discount

In Property on 11/03/2011 at 9:20 am

But company is leveraged over its eyeballs — 128%. I’ll give it a miss but OCBC’s analysis is worth a read in giving one the facts on which it bases its call.

OCBC Investment Research, March 9

ROXY-PACIFIC Holdings is a specialty property and hospitality group in Singapore. It primarily develops domestic residential projects, and also owns two investment properties and a hotel, Grand Mercure Roxy Hotel (GMRH). In FY10, 77 per cent of revenues and 59 per cent of earnings were derived from the property development segment. The investment properties segment and GMRH constituted 1.5 per cent and 20.5 per cent of revenues respectively. We expect future earnings in FY11 and FY12 to be underpinned by recognition of revenue at 12 projects that are mostly sold out.

We believe Roxy enjoys a strong reputation for quality small to mid-sized projects in the East; and in recent years, it has expanded successfully to other regions and larger projects, ie, Spottiswoode 18 at Tanjong Pagar. Management has indicated a soft target of $300 million in acquisitions this year and would also look closely at commercial and retail deals. The current balance sheet shows a high net gearing of 128 per cent. If we revalue GMRH to $188 million (currently held at $71 million book value), net gearing falls to 61 per cent..

We have valued Roxy at $0.55 per share – a 25 per cent discount to its RNAV sum-of-the-parts value of $0.73. Read the rest of this entry »