SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

<div><em><strong>Non- SGX Report: These equity research reports are not written by the SGX.&nbsp;</strong>SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.</em></div>
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<h2>Oxley Holdings</h2>
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<h3>With the red-hot residential market, here's a property developer to watch</h3>
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<p>Oxley Holdings (SGX:5UX) specialises in the development of residential, commercial, industrial, and hospitality projects. We believe that its deleveraging efforts could drive a re-rating in its share price moving forward.</p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/239/290/original/image_69345502631635859898860.png?1635859909" class="editor-image img-responsive" data-smartkarma-image-id="239290"></figure>
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<li>Since its incorporation in 2010, property developer Oxley Holdings (SGX:5UX) has a launched portfolio of 48 projects spanning across Singapore as well as international markets including the United Kingdom.</li>
<li>With a substantial amount of unbilled sales, Oxley is expected to generate a steady income stream over the next three years.</li>
<li>The strong generation of cash flow generation has supported Oxley’s deleveraging efforts. We believe that the continuous reduction in its net gearing ratio could drive a re-rating in its share price.</li>
<li>We expect the streamlining of Oxley’s portfolio to focus on its core competency – property development – to deliver greater value to shareholders and further support its deleveraging.</li>
<li>We value Oxley at a target price of SGD 0.28, derived from a 50% discount to our estimated revalued net asset value (RNAV). This represents a potential upside of 17% based on the closing price of SGD 0.24 on 18 August 2021.</li>
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Non- SGX Report: These equity research reports are not written by the SGX.&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.





Oxley Holdings



With the red-hot residential market, here's a property developer to watch



Oxley Holdings (SGX:5UX) specialises in the development of residential, commercial, industrial, and hospitality projects. We believe that its deleveraging efforts could drive a re-rating in its share price moving forward.





Since its incorporation in 2010, property developer Oxley Holdings (SGX:5UX) has a launched portfolio of 48 projects spanning across Singapore as well as international markets including the United Kingdom.
With a substantial amount of unbilled sales, Oxley is expected to generate a steady income stream over the next three years.
The strong generation of cash flow generation has supported Oxley’s deleveraging efforts. We believe that the continuous reduction in its net gearing ratio could drive a re-rating in its share price.
We expect the streamlining of Oxley’s portfolio to focus on its core competency – property development – to deliver greater value to shareholders and further support its deleveraging.
We value Oxley at a target price of SGD 0.28, derived from a 50% discount to our estimated revalued net asset value (RNAV). This represents a potential upside of 17% based on the closing price of SGD 0.24 on 18 August 2021.















(Non-SGX Report) Oxley Holdings: With the Red-Hot Residential Market, Here's a Property Developer to Watch

Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<h2>Singapore</h2><h3>Jul 21 new private home sales surge 82% MoM; On track for a record year (since 2013)</h3><ul><li>Sales of new private homes surged in Jul21 with developers selling 1,589 units, up 82% MoM from 872 units in Jun21. On a YoY basis, sales were up 47% from 1,080 units in Jul20. Including ECs sold, developers moved 1,744 new homes last month, 81% higher MoM and 53% higher YoY</li><li>Developers launched 1,104 units in Jul21, up 36% MoM and 27% YoY higher. There were no new ECs launched in Jun21. Jul21 take-up rate was robust at 144% (from 107% in Jun21 and 124% in Jul20). Pasir Ris 8 was the top seller last month, moving 418 units, or 86% of its 487 units, with median price of S$1,624psf</li><li>Sales in Jul21 were driven by Pasir Ris 8, followed by Normanton Park, which sold 125 units, Midwood, which sold 91 units and Sengkang Grand Residences, which sold 89 units. Excluding EC, sales volume in Jul21 was highest in OCR followed by RCR and CCR, respectively. The sales volume was 1,012 (64%), 438 (28%) and 139 (9%) units, respectively</li><li>Almost 50% of sales last month were priced below S$1.5m, 29% were between S$1.5-2m, and 21.5% were above S$2m. The average price paid for a unit last month was S$1.7m. In the first seven months of 2021, developers have sold an estimated 8,004 units. Barring new cooling measures, total new private home sales is on course to exceed 11,000 units (excluding ECs) by the end of 2021, locking in the highest annual new sales figure since 2013, which saw 14,948 new sales.</li></ul>

SingaporeJul 21 new private home sales surge 82% MoM; On track for a record year (since 2013)Sales of new private homes surged in Jul21 with developers selling 1,589 units, up 82% MoM from 872 units in Jun21. On a YoY basis, sales were up 47% from 1,080 units in Jul20. Including ECs sold, developers moved 1,744 new homes last month, 81% higher MoM and 53% higher YoYDevelopers launched 1,104 units in Jul21, up 36% MoM and 27% YoY higher. There were no new ECs launched in Jun21. Jul21 take-up rate was robust at 144% (from 107% in Jun21 and 124% in Jul20). Pasir Ris 8 was the top seller last month, moving 418 units, or 86% of its 487 units, with median price of S$1,624psfSales in Jul21 were driven by Pasir Ris 8, followed by Normanton Park, which sold 125 units, Midwood, which sold 91 units and Sengkang Grand Residences, which sold 89 units. Excluding EC, sales volume in Jul21 was highest in OCR followed by RCR and CCR, respectively. The sales volume was 1,012 (64%), 438 (28%) and 139 (9%) units, respectivelyAlmost 50% of sales last month were priced below S$1.5m, 29% were between S$1.5-2m, and 21.5% were above S$2m. The average price paid for a unit last month was S$1.7m. In the first seven months of 2021, developers have sold an estimated 8,004 units. Barring new cooling measures, total new private home sales is on course to exceed 11,000 units (excluding ECs) by the end of 2021, locking in the highest annual new sales figure since 2013, which saw 14,948 new sales.

<h2>Singapore</h2><h3>SREITs results in a glance (see detailed spreadsheet and calendar attached)</h3><table class="table table-striped"><tbody><tr><td style="width: 363.047px; height: 14px;"><p> </p></td><td style="width: 362.953px; height: 14px;"><p>ELITE (GBP)</p></td></tr><tr><td style="width: 363.047px; height: 14px;"><p>Period</p></td><td style="width: 362.953px; height: 14px;"><p>1H21</p></td></tr><tr><td style="width: 363.047px; height: 14px;"><p>Gross Revenue (S$ m)</p></td><td style="width: 362.953px; height: 14px;"><p>15.9 (+37.7% vs forecast)</p></td></tr><tr><td style="width: 363.047px; height: 14px;"><p>NPI (S$ m)</p></td><td style="width: 362.953px; height: 14px;"><p>15.4 (+37% vs forecast)</p></td></tr><tr><td style="width: 363.047px; height: 14px;"><p>DPU (S$ c)</p></td><td style="width: 362.953px; height: 14px;"><p>2.63 (+8.7% vs forecast)</p></td></tr><tr><td style="width: 363.047px; height: 14px;"><p>NAV per Unit (S$)</p></td><td style="width: 362.953px; height: 14px;"><p>0.62</p></td></tr><tr><td style="width: 363.047px; height: 14px;"><p>P/B (x)</p></td><td style="width: 362.953px; height: 14px;"><p>1.08</p></td></tr><tr><td style="width: 363.047px; height: 14px;"><p>Occupancy (%)</p></td><td style="width: 362.953px; height: 14px;"><p>100</p></td></tr><tr><td style="width: 363.047px; height: 7px;"><p>Reversion (%)</p></td><td style="width: 362.953px; height: 7px;"><p>Not Disclosed</p></td></tr><tr><td style="width: 363.047px; height: 14px;"><p>Gearing (%)</p></td><td style="width: 362.953px; height: 14px;"><p>42.1</p></td></tr><tr><td style="width: 363.047px; height: 14px;"><p>Cost of Debt (%)</p></td><td style="width: 362.953px; height: 14px;"><p>1.9</p></td></tr><tr><td style="width: 363.047px; height: 14px;"><p>1 Yr Fwd Yield (%)</p></td><td style="width: 362.953px; height: 14px;"><p>7.41</p></td></tr><tr><td style="width: 363.047px; height: 14px;"><p>Debt Hedged (%)</p></td><td style="width: 362.953px; height: 14px;"><p>63</p></td></tr><tr><td style="width: 363.047px; height: 14px;"><p>Target Price</p></td><td style="width: 362.953px; height: 14px;"><p>N/A</p></td></tr><tr><td style="width: 363.047px; height: 14px;"><p>Rating</p></td><td style="width: 362.953px; height: 14px;"><p>N/A</p></td></tr></tbody></table>

SingaporeSREITs results in a glance (see detailed spreadsheet and calendar attached) ELITE (GBP)Period1H21Gross Revenue (S$ m)15.9 (+37.7% vs forecast)NPI (S$ m)15.4 (+37% vs forecast)DPU (S$ c)2.63 (+8.7% vs forecast)NAV per Unit (S$)0.62P/B (x)1.08Occupancy (%)100Reversion (%)Not DisclosedGearing (%)42.1Cost of Debt (%)1.91 Yr Fwd Yield (%)7.41Debt Hedged (%)63Target PriceN/ARatingN/A

ASEAN Builder's Scoop (02Jul21) - ELITE >7% GBP Yield with Min Collection Risks

<h2>Singapore</h2>
<h3>SREITs results in a glance (see detailed spreadsheet and calendar attached)</h3>
<table class="table table-striped">
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<td style="width: 147.562px;">
<p> </p>
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<td style="width: 144.797px;">
<p>AAREIT</p>
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<td style="width: 144.328px;">
<p>CICT</p>
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<td style="width: 142.125px;">
<p>KREIT</p>
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<td style="width: 147.188px;">
<p>MINT</p>
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<td style="width: 147.562px;">
<p>Period</p>
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<td style="width: 144.797px;">
<p>1Q22</p>
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<td style="width: 144.328px;">
<p>1H21</p>
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<td style="width: 142.125px;">
<p>1H21</p>
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<td style="width: 147.188px;">
<p>1Q22</p>
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<td style="width: 147.562px;">
<p>Gross Revenue (S$ m)</p>
</td>
<td style="width: 144.797px;">
<p>31.8 (+16.8% YoY)</p>
</td>
<td style="width: 144.328px;">
<p>645.7 (+102.8% YoY)</p>
</td>
<td style="width: 142.125px;">
<p>105.8 (+40.2% YoY)</p>
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<td style="width: 147.188px;">
<p>128.1 (29.2% YoY)</p>
</td>
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<td style="width: 147.562px;">
<p>NPI (S$ m)</p>
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<td style="width: 144.797px;">
<p>23.1 (+23.9% YoY)</p>
</td>
<td style="width: 144.328px;">
<p>472.2 (+118% YoY)</p>
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<td style="width: 142.125px;">
<p>84.4 (+43.1% YoY)</p>
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<td style="width: 147.188px;">
<p>104.7 (33.1% YoY)</p>
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<td style="width: 147.562px;">
<p>DPU (S$ c)</p>
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<td style="width: 144.797px;">
<p>2.25 (+12.5% YoY)</p>
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<td style="width: 144.328px;">
<p>5.18 (+75% YoY)</p>
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<td style="width: 142.125px;">
<p>2.94 (+5.0% YoY)</p>
</td>
<td style="width: 147.188px;">
<p>3.35 (+16.7% YoY)</p>
</td>
</tr>
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<td style="width: 147.562px;">
<p>NAV per Unit (S$)</p>
</td>
<td style="width: 144.797px;">
<p>1.35</p>
</td>
<td style="width: 144.328px;">
<p>2.05</p>
</td>
<td style="width: 142.125px;">
<p>1.29</p>
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<td style="width: 147.188px;">
<p>1.75</p>
</td>
</tr>
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<td style="width: 147.562px;">
<p>P/B (x)</p>
</td>
<td style="width: 144.797px;">
<p>1.15</p>
</td>
<td style="width: 144.328px;">
<p>1.02</p>
</td>
<td style="width: 142.125px;">
<p>0.93</p>
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<td style="width: 147.188px;">
<p>1.65</p>
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<td style="width: 147.562px;">
<p>Occupancy (%)</p>
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<td style="width: 144.797px;">
<p>95.7</p>
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<td style="width: 144.328px;">
<p>94.9</p>
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<td style="width: 142.125px;">
<p>96.7</p>
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<td style="width: 147.188px;">
<p>94.3 (Overall)</p>
<p>97.8 (North American Portfolio)</p>
<p>93.4 (Singapore Portfolio)</p>
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<td style="width: 147.562px;">
<p>Reversion (%)</p>
</td>
<td style="width: 144.797px;">
<p>Not disclosed</p>
</td>
<td style="width: 144.328px;">
<p>-9.1 (retail)</p>
</td>
<td style="width: 142.125px;">
<p>6.91</p>
</td>
<td style="width: 147.188px;">
<p>Not Disclosed</p>
</td>
</tr>
<tr>
<td style="width: 147.562px;">
<p>Gearing (%)</p>
</td>
<td style="width: 144.797px;">
<p>34.3</p>
</td>
<td style="width: 144.328px;">
<p>40.5</p>
</td>
<td style="width: 142.125px;">
<p>38.9</p>
</td>
<td style="width: 147.188px;">
<p>31.0</p>
</td>
</tr>
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<td style="width: 147.562px;">
<p>Cost of Debt (%)</p>
</td>
<td style="width: 144.797px;">
<p>2.8</p>
</td>
<td style="width: 144.328px;">
<p>2.4</p>
</td>
<td style="width: 142.125px;">
<p>1.97</p>
</td>
<td style="width: 147.188px;">
<p>2.7</p>
</td>
</tr>
<tr>
<td style="width: 147.562px;">
<p>1 Yr Fwd Yield (%)</p>
</td>
<td style="width: 144.797px;">
<p>6.1</p>
</td>
<td style="width: 144.328px;">
<p>5.19</p>
</td>
<td style="width: 142.125px;">
<p>4.92</p>
</td>
<td style="width: 147.188px;">
<p>1.51</p>
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</tr>
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<td style="width: 147.562px;">
<p>Debt Hedged (%)</p>
</td>
<td style="width: 144.797px;">
<p>77.2</p>
</td>
<td style="width: 144.328px;">
<p>85</p>
</td>
<td style="width: 142.125px;">
<p>68</p>
</td>
<td style="width: 147.188px;">
<p>95.8</p>
</td>
</tr>
<tr>
<td style="width: 147.562px;">
<p>Target Price</p>
</td>
<td style="width: 144.797px;">
<p>Under Review</p>
</td>
<td style="width: 144.328px;">
<p>N/A</p>
</td>
<td style="width: 142.125px;">
<p>N/A</p>
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<td style="width: 147.188px;">
<p>N/A</p>
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<tr>
<td style="width: 147.562px;">
<p>Rating</p>
</td>
<td style="width: 144.797px;">
<p>Under Review</p>
</td>
<td style="width: 144.328px;">
<p>N/A</p>
</td>
<td style="width: 142.125px;">
<p>N/A</p>
</td>
<td style="width: 147.188px;">
<p>N/A</p>
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Singapore
SREITs results in a glance (see detailed spreadsheet and calendar attached)




 


AAREIT


CICT


KREIT


MINT




Period


1Q22


1H21


1H21


1Q22




Gross Revenue (S$ m)


31.8 (+16.8% YoY)


645.7 (+102.8% YoY)


105.8 (+40.2% YoY)


128.1 (29.2% YoY)




NPI (S$ m)


23.1 (+23.9% YoY)


472.2 (+118% YoY)


84.4 (+43.1% YoY)


104.7 (33.1% YoY)




DPU (S$ c)


2.25 (+12.5% YoY)


5.18 (+75% YoY)


2.94 (+5.0% YoY)


3.35 (+16.7% YoY)




NAV per Unit (S$)


1.35


2.05


1.29


1.75




P/B (x)


1.15


1.02


0.93


1.65




Occupancy (%)


95.7


94.9


96.7


94.3 (Overall)
97.8 (North American Portfolio)
93.4 (Singapore Portfolio)




Reversion (%)


Not disclosed


-9.1 (retail)


6.91


Not Disclosed




Gearing (%)


34.3


40.5


38.9


31.0




Cost of Debt (%)


2.8


2.4


1.97


2.7




1 Yr Fwd Yield (%)


6.1


5.19


4.92


1.51




Debt Hedged (%)


77.2


85


68


95.8




Target Price


Under Review


N/A


N/A


N/A




Rating


Under Review


N/A


N/A


N/A





ASEAN Builder's Scoop (28Jul21) - AAREIT Stable Performance

<h2>Singapore </h2><h3>Commercial properties set for big change; Long-term reduction in supply likely</h3><ul><li>Offices in the CBD, especially older buildings, need to evolve. Both the Central Business District Incentive (CBDI) Scheme and Strategic Development Incentive (SDI) Scheme were introduced to incentivise the redevelopment of older buildings to more productive mixed-use developments. Under the CBDI scheme, qualifying properties are allowed to intensify their GFA by 25-30%, depending on the proposed land use. Meanwhile, the SDI is intended to redevelop precincts in strategic areas across Singapore, such as Orchard Road, the CBD and Marina Centre</li><li>Since the circuit-breaker period, URA has received nine outline applications under the CBDI Scheme, of which six have been given in-principle approval. Three outline applications under the SDI Scheme were also given in-principle approval. The take-up of these schemes are also likely to result in the long-term reduction of office stock in the CBD, which plays a part in the government's decentralisation strategy to have more offices located outside the city centre, CBRE said.</li></ul><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/216/388/original/image018.png?1625188834" class="editor-image img-responsive" data-smartkarma-image-id="216388"></figure></section>

Singapore Commercial properties set for big change; Long-term reduction in supply likelyOffices in the CBD, especially older buildings, need to evolve. Both the Central Business District Incentive (CBDI) Scheme and Strategic Development Incentive (SDI) Scheme were introduced to incentivise the redevelopment of older buildings to more productive mixed-use developments. Under the CBDI scheme, qualifying properties are allowed to intensify their GFA by 25-30%, depending on the proposed land use. Meanwhile, the SDI is intended to redevelop precincts in strategic areas across Singapore, such as Orchard Road, the CBD and Marina CentreSince the circuit-breaker period, URA has received nine outline applications under the CBDI Scheme, of which six have been given in-principle approval. Three outline applications under the SDI Scheme were also given in-principle approval. The take-up of these schemes are also likely to result in the long-term reduction of office stock in the CBD, which plays a part in the government's decentralisation strategy to have more offices located outside the city centre, CBRE said.

ASEAN Builder's Scoop (2Jul21) - CBD Office Reduction in LT Supply

Singapore

Oxley Holdings Ltd. develops real estate. The Company develops residential and commercial projects in accessible locations. Oxley also develops light industrial buildings that include swimming pools and other recreational amenities.

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Oxley Holdings (OHL SP)

(Non-SGX Report) Oxley Holdings: With the Red-Hot Residential Market, Here's a Property Developer to Watch

Non- SGX Report: These equity research reports are not written by the SGX. SGX supports the distribution of the research reports by external...

Singapore Exchange Ltd (SGX)

ASEAN Builder's Scoop (17Aug21)

SG new home sales on track for a record year; OHL SG resi >90% sold; FLI supported by resi recovery; FILRT focuses on BPO tenants; NOBLE shifts...

SCCM Asia Research

ASEAN Builder's Scoop (02Jul21) - ELITE >7% GBP Yield with Min Collection Risks

ELITE >7% GBP yield with min collection risks; EAGLEHT Dalls hotel sold at lower price; GLP sees frothy valuations in most markets; DILD 1H21 mktg...

SCCM Asia Research

ASEAN Builder's Scoop (28Jul21) - AAREIT Stable Performance

AAREIT stable performance; CICT office outshines retail; KREIT cautiously optimistic; MINT acq-driven growth; KORE expands with 2 new US acq; CPG...

SCCM Asia Research

ASEAN Builder's Scoop (2Jul21) - CBD Office Reduction in LT Supply

GCB deals YTD surpassed 2020; HDB prices 2.1% shy of 2Q13 peak; Indo shuts down malls; SIRI begins accepting cryptos; Phils tourist arrivals sanked

SCCM Asia Research

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