Brokers' take

Roxy-Pacific Holdings | Hold Dec 21 close: S$0.40 Target price: S$0.39 DBS Group Research, Dec 14

Roxy's unrecognised sales stood at S$0.6 billion as at end Q3. This is expected to drive earnings in the next three to four years. Singapore projects comprise 33 per cent of the unrecognised sales, largely from sales achieved from projects launched in FY18, while Australia projects comprise 58 per cent. In Singapore, Roxy successfully launched five residentialprojects in FY18, of which three projects were launched before the authorities implemented new cooling measures. These projects have achieved sales ranging from 77 per cent to 98 per cent. As the landbank were acquired early, these projects sit on commendable margins at more than 15 per cent.

Additionally, the group is building recurring income through the acquisition of investment properties in Australia and New Zealand. After divesting 117 Clarence St for almost double its acquisition price in 2016, Roxy reinvested in three commercial buildings for S$117 million. The properties are estimated to yield about 5 per cent in Australia and 6 per cent in New Zealand. Roxy also has pipeline projects of 600 units which are slated for launch in FY19.