Felicia Tan  Published on Fri, Feb 19, 2021 / 11:33 AM GMT+8 / Updated 2 hours ago

RHB Group Research analyst Jarick Seet is maintaining his &ldquo buy&rdquo recommendation on Oxley Holdings with a lower target price of 27 cents from 29 cents previously, implying a 5% yield for the FY2021.

The way he sees it, things are looking up for the property development group as it reported a 117% y-o-y surge in PATMI of $34.1 million for the 1HFY2021 ended December. To Seet, Oxley looks set to enjoy the &ldquo fruits of its labour&rdquo for the next few years due to the near-completion and sale, as well as the receipt of its temporary occupation permit of its overseas properties.

The Royal Wharf project in London, England, which is over 99% sold, is expected to be fully completed and sold before the end of 3QFY2021.

The residential blocks at Dublin Landings in Ireland, which has been sold to Greystar, will be progressively completed in the same period.

The Peak project in Cambodia, which has been 86% sold, has received the temporary occupation permit (TOP) for its retail component. The residential and office towers are expected to be completed, also around 3QFY2021.

&ldquo Upon their completion, Oxley should finally be able to realise the fruits of its labour,  strengthen its balance sheet, and still pay attractive dividends to shareholders,&rdquo writes Seet.

Singapore&rsquo s property scene also looks to be stable for now. As at Jan 31, about 3,293 units &ndash or 84% of the group&rsquo s total portfolio &ndash have been sold, with $3.7 billion to be collectively progressively from buyers.

During the circuit breaker period from April to June 2020, Oxley showcased their units to potential buyers through virtual showrooms, and saw pent-up demand for its homes, according to Seet. &ldquo From April to early August last year, the company issued over 280 options-to-purchase to buyers, garnering sales of more than $330 million. Construction activities in Singapore have gradually returned to full operation, and Oxley can look forward to higher revenues and profit recognition in FY2021,&rdquo he adds.