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.

Asia’s leading multi-asset exchange

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

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Equity Bottom-Up

<p><i><b>These equity research reports are not written by the SGX.</b> SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.</i></p><p>COMPANY RESULTS</p>
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<h2><strong>Oxley Holdings (OHL SP)<br></strong><strong>2QFY20: Thriving In Adversity</strong></h2>
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<p><strong>Oxley continues to thrive with 69% sales for Singapore inventory (target of 100% by end-20). Invariably, the Coronavirus outbreak has impacted its Gaobeidian sales and hospitality portfolio. The group continues to stay nimble, with its deleveraging on track and net gearing declining to 1.94x (-31ppt qoq). The negative global outlook has also pressured interest rates downwards, lowering the group’s borrowing costs. Maintain BUY with a lower S$0.49 target price (previously S$0.50), pegged at a 30% discount to our RNAV.</strong></p>
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<p>•<strong> Results below expectations.</strong> Oxley reported a 2QFY20 PATMI of S$3.6m (-90% yoy), bringing 1HFY20 PATMI to S$15.7m (-54% yoy). 1HFY20 revenue grew 13% yoy to S$594m, due to the increase in revenue from development projects in Singapore and Dublin, 3-month contribution from the Australia subsidiary, partially offset by lower contribution from the UK project. Still, 1HFY20 gross profit declined (-6% yoy) due to lower gross margins (- 3ppt yoy), dragged by lower-margin residential projects in Dublin, the new subsidiary in Australia and certain Singapore development projects.</p>
<p>• 1HFY20 share of results for associates and JVs was a S$12.3m gain (vs S$3.9m loss same period last year), mainly attributable to an associate in the UK. Finance costs crept up (+14% yoy), primarily due to the increase in borrowings to finance the group’s development and investment projects and advances to JVs, partially offset by the absence of interest cost incurred on the bank borrowings for an investment property deconsolidated in 4QFY19.. We expect better recognition in 2HFY20.</p>
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These equity research reports are not written by the SGX. SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.COMPANY RESULTS


Oxley Holdings (OHL SP) 2QFY20: Thriving In Adversity


Oxley continues to thrive with 69% sales for Singapore inventory (target of 100% by end-20). Invariably, the Coronavirus outbreak has impacted its Gaobeidian sales and hospitality portfolio. The group continues to stay nimble, with its deleveraging on track and net gearing declining to 1.94x (-31ppt qoq). The negative global outlook has also pressured interest rates downwards, lowering the group’s borrowing costs. Maintain BUY with a lower S$0.49 target price (previously S$0.50), pegged at a 30% discount to our RNAV.





• Results below expectations. Oxley reported a 2QFY20 PATMI of S$3.6m (-90% yoy), bringing 1HFY20 PATMI to S$15.7m (-54% yoy). 1HFY20 revenue grew 13% yoy to S$594m, due to the increase in revenue from development projects in Singapore and Dublin, 3-month contribution from the Australia subsidiary, partially offset by lower contribution from the UK project. Still, 1HFY20 gross profit declined (-6% yoy) due to lower gross margins (- 3ppt yoy), dragged by lower-margin residential projects in Dublin, the new subsidiary in Australia and certain Singapore development projects.
• 1HFY20 share of results for associates and JVs was a S$12.3m gain (vs S$3.9m loss same period last year), mainly attributable to an associate in the UK. Finance costs crept up (+14% yoy), primarily due to the increase in borrowings to finance the group’s development and investment projects and advances to JVs, partially offset by the absence of interest cost incurred on the bank borrowings for an investment property deconsolidated in 4QFY19.. We expect better recognition in 2HFY20.






Non-SGX Report: Oxley Holdings (OHL SP): 2QFY20: Thriving In Adversity