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27-08-14, 16:58
http://www.straitstimes.com/archive/friday/premium/money/story/weak-q4-fails-dent-oxleys-profit-full-year-20140822
Weak Q4 fails to dent Oxley's profit for full year
Fourth-quarter earnings down 74%, but full-year net gain quadruples
Published on Aug 22, 2014 1:09 AM
By Cheryl Ong
DEVELOPER Oxley Holdings has suffered a slump in fourth-quarter earnings, although its full-year results were strong.
Net profit for the three months ended June 30 plunged 74 per cent to $9.8 million as revenue sank 70 per cent to $82.9 million.
The poor fourth-quarter showing comes amid a slowing residential property market.
But chief executive Ching Chiat Kwong is undaunted by the market lull as he is unafraid to price projects well below those of his rivals.
That strategy has helped Oxley sell out 15 of its 28 projects already launched. Eight more have been more than 80 per cent sold.
"Oxley is driven by a certain model: We execute very fast, we sell very fast, we take back money very fast," said Mr Ching in an interview yesterday. He is ranked 36th in the Forbes list of Singapore's 50 wealthiest people.
"If everybody sells at $1,000 per sq ft, I will sell at $800 psf... For me, I always do it the very first time and finish it."
Despite the weak fourth quarter, full-year revenue came in at $1.07 billion, up 135 per cent from a year earlier, mainly driven by revenue from its industrial projects Oxley Bizhub and The Commerze@Irving, it said.
Full-year net profit quadrupled to $286.7 million from $69.1 million a year earlier. Earnings per share for the same period was 9.73 cents, up from 2.45 cents.
The firm said it still expects to recognise $3.65 billion from pre-sales revenue from its projects in the next two to three years - $2.6 billion from its local developments and $1.05 billion from its foreign ventures.
It helps that the firm has only one local project, The Rise@Oxley in Oxley Rise, left to sell in the sluggish residential market here, said Mr Ching.
Oxley, known for its shoebox units, stopped picking up land in Singapore two years ago after multiple rounds of cooling measures.
Instead, Mr Ching is bullish on emerging markets such as Cambodia, with four developments in the pipeline, and Myanmar, where he is keen to make his first foray.
In Europe, which Mr Ching calls a "recovering market", the company is in talks with officials to develop a mixed-use project outside of London.
Oxley has been on the acquisition trail abroad since May last year. It first ventured into Kuala Lumpur, where its upcoming Beverly Heights project will be launched late next year. The mixed development will be next to the Petronas Towers and will have a hotel as well.
In London, Oxley's massive 3,385-unit Royal Wharf project in the Docklands area on a 149,734 sq m plot has a gross development value of £1.6 billion (S$3.31 billion) .
So far, 99 per cent of its 811 units launched in Phase 1 have been sold at prices ranging from £300,000 to £600,000.
About a third of buyers were from London, while more than 20 per cent were Singaporeans.
Oxley is now seeking permission to put 800 more units on the market in October - likely to be sold "above £600,000".
"I'm a very practical man... I don't like to hold on and wait for another half-year before I start selling again. I always believe that once I can sell out each phase, there will be more people coming later," said Mr Ching.
The firm proposed a final cash dividend of 0.18 cent per ordinary share.
Oxley's shares closed five cents higher at 68.5 cents yesterday.
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Weak Q4 fails to dent Oxley's profit for full year
Fourth-quarter earnings down 74%, but full-year net gain quadruples
Published on Aug 22, 2014 1:09 AM
By Cheryl Ong
DEVELOPER Oxley Holdings has suffered a slump in fourth-quarter earnings, although its full-year results were strong.
Net profit for the three months ended June 30 plunged 74 per cent to $9.8 million as revenue sank 70 per cent to $82.9 million.
The poor fourth-quarter showing comes amid a slowing residential property market.
But chief executive Ching Chiat Kwong is undaunted by the market lull as he is unafraid to price projects well below those of his rivals.
That strategy has helped Oxley sell out 15 of its 28 projects already launched. Eight more have been more than 80 per cent sold.
"Oxley is driven by a certain model: We execute very fast, we sell very fast, we take back money very fast," said Mr Ching in an interview yesterday. He is ranked 36th in the Forbes list of Singapore's 50 wealthiest people.
"If everybody sells at $1,000 per sq ft, I will sell at $800 psf... For me, I always do it the very first time and finish it."
Despite the weak fourth quarter, full-year revenue came in at $1.07 billion, up 135 per cent from a year earlier, mainly driven by revenue from its industrial projects Oxley Bizhub and The Commerze@Irving, it said.
Full-year net profit quadrupled to $286.7 million from $69.1 million a year earlier. Earnings per share for the same period was 9.73 cents, up from 2.45 cents.
The firm said it still expects to recognise $3.65 billion from pre-sales revenue from its projects in the next two to three years - $2.6 billion from its local developments and $1.05 billion from its foreign ventures.
It helps that the firm has only one local project, The Rise@Oxley in Oxley Rise, left to sell in the sluggish residential market here, said Mr Ching.
Oxley, known for its shoebox units, stopped picking up land in Singapore two years ago after multiple rounds of cooling measures.
Instead, Mr Ching is bullish on emerging markets such as Cambodia, with four developments in the pipeline, and Myanmar, where he is keen to make his first foray.
In Europe, which Mr Ching calls a "recovering market", the company is in talks with officials to develop a mixed-use project outside of London.
Oxley has been on the acquisition trail abroad since May last year. It first ventured into Kuala Lumpur, where its upcoming Beverly Heights project will be launched late next year. The mixed development will be next to the Petronas Towers and will have a hotel as well.
In London, Oxley's massive 3,385-unit Royal Wharf project in the Docklands area on a 149,734 sq m plot has a gross development value of £1.6 billion (S$3.31 billion) .
So far, 99 per cent of its 811 units launched in Phase 1 have been sold at prices ranging from £300,000 to £600,000.
About a third of buyers were from London, while more than 20 per cent were Singaporeans.
Oxley is now seeking permission to put 800 more units on the market in October - likely to be sold "above £600,000".
"I'm a very practical man... I don't like to hold on and wait for another half-year before I start selling again. I always believe that once I can sell out each phase, there will be more people coming later," said Mr Ching.
The firm proposed a final cash dividend of 0.18 cent per ordinary share.
Oxley's shares closed five cents higher at 68.5 cents yesterday.
[email protected]